Ni Hsin says treasury share sale may have affected trading
Shares closed at 26 sen after falling as low as 15 sen, prompting an unusual market activity query from Bursa Malaysia.
Ni Hsin Group Bhd said a treasury share transaction that raised RM2.38 million may have affected trading in its stock, but it could not establish a conclusive link. The cookware manufacturer was responding on Oct 30 to Bursa Malaysia’s unusual market activity query following a steep share price decline and heavy turnover.
The company sold five million treasury shares on Oct 26 at between 47.5 sen and 48 sen each, according to a separate filing. Its treasury share balance stood at 44.35 million after the sale.
Ni Hsin’s stock fell 59.5% at its lowest point to 15 sen before recovering to finish at 26 sen. The closing decline was 11 sen or 29.7%, while turnover exceeded 66 million shares. The closing price valued the group at approximately RM151 million, three days after its shares hit a record 51 sen.
After checking with directors, major shareholders and other relevant parties, Ni Hsin said it knew of no business-related rumours or reports that could account for the trading. It also said it remained compliant with Bursa Malaysia’s Main Market Listing Requirements, including immediate disclosure obligations.
The group highlighted its proposed EV diversification, announced on Sept 8, and an Oct 27 proposal for a one-for-two bonus issue involving up to 312.65 million free warrants. It plans to allocate 95% of eventual exercise proceeds to inventories and operating expenses, with the balance funding expansion of assembly lines and production and storage facilities.
