Perak Corp Bhd Faces UMA Query Following Sharp Share Price Surge
PETALING JAYA: Perak Corp Bhd, a state-owned entity under the Perak government, has come under scrutiny from Bursa Malaysia Securities after its share price experienced a significant increase. The company's shares rose as much as 20% or 15 sen to 89 sen, reaching their highest level since May 2018. The stock closed at 85 sen, reflecting a 15% increase or 11 sen, which values the group at RM85 million. A total of 2.1 million shares were traded during the session.
The recent 20% jump in the stock is just the beginning of a larger trend. Over the past five trading days, the company’s shares have surged by 77%, and within the last month, they have climbed an impressive 255%. This growth has been particularly notable as the stock was trading around the 25 sen level just a month ago.
Bursa Malaysia Securities has raised concerns about the sharp rise in the company’s share price and trading volume. As part of its usual market activity (UMA) query, the exchange regulator has requested that Practice Note 17 (PN17) status companies confirm whether there are any unannounced corporate developments, ongoing negotiations, or other factors that could explain the sudden increase in share price and trading activity.
Perak Corp Bhd operates across several sectors, including property development, ports and logistics, hospitality, and tourism. Its largest shareholder is Perbadanan Kemajuan Negeri Perak, a government agency that holds a 52.9% stake in the company.
The company fell into the PN17 classification in February 2020 following the closure of its Movie Animation Park Studios theme park in Ipoh and after defaulting on a term loan. In response, the company submitted a regularisation plan in May this year to exit its PN17 status. However, Bursa Securities has not yet made a decision on whether to approve or reject the plan.
The regularisation plan includes several key components:
- A capital reduction to streamline the company’s financial structure
- A joint development project aimed at revitalising certain assets
- Land sales to generate additional revenue
- Entitlement from a joint development to enhance future profitability
- The issuance of preference shares to settle debts owed to creditors
These measures are intended to address the company’s financial challenges and position it for long-term stability. The outcome of Bursa Securities’ evaluation will be crucial in determining the next steps for Perak Corp Bhd.
As the company continues to navigate its financial restructuring, investors and stakeholders are closely watching the situation. The recent surge in share price has sparked interest, but the underlying factors driving this movement remain under investigation. With the potential for regulatory approval of its regularisation plan, Perak Corp Bhd may be on the path to recovery and renewed growth.