HCK points to share-split plan in response to UMA query

KUALA LUMPUR (April 13): HCK Capital Bhd, whose share price surged to as high as RM6.60 yesterday, points to its recently announced share-split plan, together with a proposed rights issue of warrants, in response to an unusual market (UMA) query from the stock exchange regulator.

Shares in the company settled at their highest closing price of RM6.20 yesterday, after just some 62,200 shares were traded.

Year to date, the stock has jumped 89%. In yesterday’s trading alone, the stock climbed RM1.05 or 20.4% in one day from Tuesday’s close, prompting the UMA query from Bursa Securities.

In a stock exchange filing, HCK said it was not aware of what may have caused the sharp rise in its share price recently.

However, it noted that it announced on last Friday that it was planning to undertake a one-to-five share split, together with a renounceable rights issue of 210.56 million warrants at an indicative issue price of five sen per warrant, on the basis of one warrant for every two split shares held.

Based on the indicative issue price, the rights issue of warrants was expected to raise some RM10.53 million for the group.

The above proposals, it added, were still pending approvals by Bursa, HCK shareholders and other relevant authorities.

This article first appeared in The Edge Financial Daily, on April 13, 2017.

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