KUALA LUMPUR: Widetech (Malaysia) Bhd, whose share price surged to a multi-year high of RM4 on Thursday, is unaware of the reasons for the unusual market activity (UMA), except the emergence of My E.G. Services Bhd managing director Wong Thean Soon as a substantial shareholder.
In its reply to Bursa Malaysia Securities at midday on Friday, it said it had enquired with the directors, major shareholders and others and there were no issues which could have caused the UMA.
“There is no corporate development relating to our group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion, ” it said.
Widetech said it was only aware of the emergence of a new major shareholder on May 18, which the company secretary had informed Bursa.
“Furthermore, we have Google searched and have not found any information on the company that has not been previously announced, which may potentially lead to the said price increase, ” it said.
Wong had emerged as a substantial shareholder in Widetech when he purchased 4.17 million shares or a 9.33% stake on May 12 in an off-market deal.
He is deemed interest in 1.32 million shares or 2.96% stake via Asia Internet Holdings Sdn Bhd.
On Thursday afternoon, its share price surged by 28% to a multi-year high of RM4 in afternoon trade, prompting Bursa Securities to query it.
At midday on Friday, Widetech’s share price was down 33 sen to RM3.05. There were 249,300 shares traded at prices ranging from RM3 to RM3.69.
On May 7, Bursa Securities imposed a cap on the upper limit price of Widetech at RM2.15 on May 10.
The freezing of the price then was due to the counter trading at the static limit-up prices for two straight days. Its share price closed 49 sen higher at RM2.15 with 587,500 shares traded on May 7.
Its share price closed at 59 sen on Feb 8 and rallied to a high RM1.90 on Feb 18. It fell to RM1.02 on March 3 and then regained momentum to close at RM1.28 on May 5. It hit limit-up on May 6 and 7.
Its issued shares are 44.75 million only.
Widetch specialises in the manufacture of precision springs, which are used in a cross section of industries ranging from electrical and electronics to automotive and general household and consumer products.