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- On Wednesday, Ireka received an UMA query following a sharp rise in its share price and volume. The stock saw its share price settle at 18 sen, a whopping 157% jump from its previous closing price of seven sen.
KUALA LUMPUR (July 31): Ireka Corp Bhd (KL:IREKA) is in early talks with a party about a possible corporate plan to fix its Practice Note 17 (PN17) status.
The construction outfit was responding to an unusual market query (UMA) from the bourse regulator.
“The discussions/negotiations are still at a preliminary stage and no definitive agreement has been reached at this juncture,” said Ireka in a bourse filing on Thursday.
The company said it will make the necessary announcement in accordance with the listing requirements of Bursa Securities as and when there are material developments in relation to the aforesaid matter.
Ireka also reiterated that it remains in full compliance with the disclosure obligations under the listing requirements of Bursa Securities, in particular Paragraph 9.03 on immediate disclosure of material information.
On Wednesday, Ireka received an UMA query following a sharp rise in its share price and volume. The stock saw its share price settle at 18 sen, a whopping 157% jump from its previous closing price of seven sen.
Its trading volume stood at 1.14 million shares, significantly higher than the 36,500 shares exchanged on Tuesday.
On Thursday, Ireka’s shares climbed further to a high of 33 sen, making the stock among the top gainers on the bourse. At 3.30pm, the stock pared some gains to trade at 26 sen, still up eight sen or 44.4%. At 26 sen, the stock is valued at RM59 million. Still, the stock is down by 39% year-to-date.
Some 3.32 million shares have changed hands so far, exceeding its 200-day average trading volume of 61,134 shares.
The company officially entered PN17 status on March 1, 2022, after Bursa rejected its application for an extension of the relief period that was provided during the Covid-19 pandemic due to its shareholders' equity falling below 50% of its share capital.
On July 28, Ireka received a mutual termination notice for its RM1.07 billion subcontract with Gammerlite Sdn Bhd on the Pan Borneo Highway project, due to funding issues and the main contractor pulling out.
The contract was for Phase 1B of Sabah’s Pan Borneo Highway, awarded in October 2024 to Ireka’s subsidiary Shoraka Construction.
The termination happened because Gammerlite failed to get funding, leading to the main contractor ending their agreement on June 30.
Ireka disagrees with the termination notice, as some work is already done and no payment terms were agreed. The group has formally objected and is seeking legal advice to recover costs and ensure fair payment.
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