Naim’s shares hit limit up, closing at RM1.20

KUCHING: Naim Holdings Bhd (Naim) share price hit limit up, with a gain of 30 sen yesterday.

The property developer closed RM1.20, with some 68 million shares traded. Naim was the No 1 gainer and among the top 10 most actively traded counters on Bursa Malaysia list. Its market capitalisation has soared to RM616.6 million.

Naim attracted massive buying when market resumed in the afternoon session. At 12:30pm, the counter closed at 94.5 sen with volume of 9.33 million units.

Naim share price has risen some 165 percent from its rights issue price of 45 sen. The rights issue, which raised about RM118.7 million mainly to be utilised to finance its three major residential projects in Kuching, Bintulu and Miri, achieved a subscription rate of 74.22 percent. The rights shares were listed on Jan 25.

Meanwhile, Perdana Petroleum Bhd (Perdana) share price staged a strong relief rally on optimism that the company is inching closer to finalise its proposed debt restructuring scheme (PDRS).

Perdana, which charters offshore supply vessels for the oil and gas (O&G) industry, surged 15 sen or 50 percent to finish at 45 sen with huge volume of nearly 340 million shares changing hands  yesterday. Perdana was the second most actively traded counter on Bursa Malaysia after Sapura Energy Bhd.
Perdana share price has risen more than 150 percent from recent low of 17.5 sen in December 2018.
Dayang Enterprise Holdings Bhd (Dayang) is Perdana’s single largest shareholder with a stake of about 60.48 percent (470.8 million shares) as at March 31, 2018.

Naim Holdings Bhd has a 9.889 percent equity interest (76.98 million shares) in Perdana.
An analyst said Perdana could have attracted investors’ interest after it returned to the black with net profit of RM9.12 million in fourth quarter 2018 (4Q-2018) against net loss of RM43.71 million in 4Q-2017.

The company narrowed its net loss for FY-2018 to RM40.91 million from RM186.11 million in FY-2017.
“Investors may have jumped onto the bandwagon of Perdana on optimism that the company may be close to address its debt restructuring scheme based on the update it has provided last month.

“The other factor is that today’s (yesterday) most of the top 10 most active counters on Bursa are related to the O&G business. Investors are riding on this bullishness as world oil prices have stayed firm following news reports that Saudi Arabia will further cut its oil production in April,” the analyst told New Sarawak Tribune when asked.

The Corporate Debt Restructuring Committee (CDRC) of Bank Negara is assisting in Perdana’s PDRS.
Since approval from CDRC in July, 2018, Perdana has conducted three meetings, the last on Jan 28, 2019, to provide milestone updates and proposed debt enhancement to all the lenders, which include financial institutions and Sukuk holders.

Perdana’s total borrowings stood at RM633.3 million as of Dec 31, 2018.
According to Perdana, it is exploring various options for the PDRS, including but not limited to extension of tenure of borrowings, disposal of assets, special issue or placement of shares and rights shares.

“Depending on the scheme eventually accepted by not less than 75 percent by value of the lenders, there may be a need to further impair the group’s non financial assets (except inventories and deferred tax assets) to their fair value less costs to sell, if lower than their carrying amount,” it said.

To recap, Perdana was suspended from trading by Bursa Securities on Sept 30, 2015 after the completion of the mandatory general offer (MGO) by Dayang for RM1.55 per share. The MGO has resulted in Perdana’s public shareholding spread falling below 10 percent (Bursa’s Main Market Listing Requirement is at least 25 percent).

To improve Perdana’s  public shareholding spread, Dayang decided to distribute some 292.2 million Perdana shares (representing 37.5 percent equity interest)  as dividend-in-specie to Dayang shareholders. Entitled shareholder holding 1,000 Dayang share was given 302 Perdana shares.
The distribution of the dividend-in-specie was completed on Nov 24, 2017 and trading of Perdana shares resumed on Dec 18, 2017.