Ireka joins PN17 list as Bursa rejects its bid for extension of relief period

KUALA LUMPUR (March 1): Ireka Corp Bhd has joined 26 other affected listed issuers under Practice Note 17 (PN17) after Bursa Malaysia Securities Bhd (Bursa Securities) rejected the company's application to extend the relief period, which ended on Feb 26.

Ireka made the application on Feb 8, according to its bourse filings.

Ireka first triggered the criteria for PN17 under Bursa's Main Market Listing Requirements in August 2020, after its auditors highlighted a material uncertainty relating to its ability to continue as a going concern regarding its audited financial statements for the financial year ended March 31, 2020 (FY20), and its shareholders’ equity had fallen to RM77.51 million or 42.67% of its RM181.29 million share capital as at end FY20, which was below the required 50% threshold.

At the time, Ireka was not classified as a PN17 issuer due to the relief measures announced by Bursa during the pandemic period.

In its latest bourse filings Tuesday, the construction company said it had again triggered the prescribed PN17 after its external auditors, Crowe Malaysia PLT, highlighted a material uncertainty relating to the company's ongoing concern in its audited financial statements for FY21.

Ireka said it is now in the midst of formulating a plan to regularise its financial condition, and that relevant announcements on that will be made in due course.

At 4pm, Ireka's share price fell half sen or 0.67% to 74 sen, giving it a market capitalisation of RM168.56 million.

Edited by Tan Choe Choe

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