Perak Corporation Clarifies Share Price Surge
Perak Corporation has publicly stated that it is not aware of any undisclosed corporate actions that could explain the recent sharp increase in its share price. The company responded to Bursa Malaysia’s inquiry regarding unusual market activity, emphasizing that it has thoroughly checked with its directors, major shareholders, and other relevant parties. After this investigation, the company concluded that there are no new corporate developments that could account for the surge in its stock.
In a filing, the Practice Note 17 (PN17) company stated, “The board is unaware of any material corporate development relating to the group’s business and affairs that has not been previously announced that may account for the unusual market activity.”
A PN17 company refers to one that has faced financial distress or failed to meet Bursa Malaysia’s financial requirements. Such companies must submit and execute a regularisation plan to avoid delisting.
Perak Corp mentioned that it is "continuously in discussion with various parties on potential ventures and business opportunities." However, it stressed that none of these preliminary discussions have led to any definitive agreements. The company also confirmed that it is "not aware of any rumour or report concerning the business and affairs of the company and its subsidiaries that may account for the trading activity."
Despite the lack of known corporate developments, Perak Corp's shares have experienced a significant rise. Over the past month, the stock has nearly quadrupled, reaching 95 sen earlier in the day after closing at 23.5 sen on September 30.
The company has been under the PN17 category since 2020 following the collapse of its Movie Animation Park Studios theme park in Ipoh and a loan default. This status means that Perak Corp must submit a regularisation plan to Bursa Malaysia to avoid being delisted.
As a state-linked company, Perak Corp is majority-owned by Perbadanan Kemajuan Negeri Perak. The company has submitted a proposed regularisation plan to Bursa, but it is still pending approval.
Key Points About Perak Corporation
- Share Price Performance: The company's shares have seen a dramatic increase over the past month, with a near-fourfold rise.
- PN17 Status: Perak Corp has been under the PN17 category since 2020 due to financial challenges, including the collapse of its theme park and a loan default.
- Regularisation Plan: The company has submitted a regularisation plan to Bursa Malaysia, which is currently under review.
- Compliance: Despite the share price surge, Perak Corp maintains that it is in full compliance with Bursa's disclosure rules.
- Discussions with Parties: The company is engaged in ongoing discussions about potential ventures and business opportunities, although no formal agreements have been reached yet.
Conclusion
Perak Corporation's recent share price movement has raised questions among investors and regulators. While the company has denied any knowledge of undisclosed corporate developments, the situation remains under scrutiny. The company's ongoing efforts to submit a regularisation plan highlight the importance of addressing its financial challenges to avoid delisting. As the market continues to watch closely, the outcome of Perak Corp's regulatory and strategic initiatives will be critical in determining its future.