The tech company’s shares continued tumbling today despite dismissing any connection with the ex-minister’s corruption case.
The beleaguered stock plunged as much as 42% or 12.5 sen to 17 sen shortly after the opening bell. It managed to recover ground to close 3 sen or 10.2% lower at 26.5 sen, valuing the group at RM2.14 billion.
It was the most actively traded stock on Bursa Malaysia with a massive 1.74 billion shares changing hands, a more than 10-fold jump over the average daily trading volume.
Last Friday, the stock hit limit down after tumbling 50.4% to 29.5 sen, prompting Bursa to suspend intraday short-selling of the stock.
Over the last three trading days, the shares of Zetrix – formerly known as MyEG Services Bhd – have fallen 55%, wiping about RM2.61 billion off its market capitalisation.
Responding to an unusual market activity query from Bursa, the company clarified it has no links with Saravanan, who was charged with corruption in relation to approval of foreign worker quotas for a local company in 2022.
Zetrix said it understood that “unfounded rumours or speculation” linking it to the three graft charges brought against Saravanan may have contributed to the unusual trading activity.
“The company wishes to emphasise that there is no basis for such rumours or speculation, and is not aware of any connection between the said charges and the business and affairs of the Zetrix AI Group,” it said in a bourse filing last Friday.
Saravanan, 58, pleaded not guilty when charged at the Kuala Lumpur sessions court on Friday.
The company was founded by its group managing director Wong Thean Soon in 2000, and rebranded as Zetrix AI last July to reflect its transition from an e-government services provider into a global technology infrastructure group.
Wong, 55, is the company’s largest shareholder with a combined 29.25% stake. Other major shareholders include CIMB Group Holdings Bhd and Retirement Fund (Inc) or KWAP. - FMT
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