Bursa reprimands Jaks Resources, KIBB over listing rules breach

 

The reprimand was issued over the lack of sufficient notice to investors over a proposed rights issue.

KUALA LUMPUR: Bursa Malaysia has publicly reprimanded Jaks Resources Bhd and its principal adviser, Kenanga Investment Bank Bhd (KIBB), for contravening the exchange’s Main Market Listing Requirements.

The stock exchange said the reprimand was for failing to ensure that there were at least 10 market days’ notice for the closing of books arising from the proposed rights issue with warrants announced on May 22 last year.

It said the finding of breach and imposition of the public reprimand were made upon completion of due process after taking into consideration all facts and circumstances of the matter.

The stock exchange said the contravention was viewed seriously as the rule serves to provide sufficient time for holders of securities or investors to make a decision of the entitlements to the interests, new securities or other distributions or rights arising from adjustments made due to an issue of securities.

On May 22 last year, Jaks announced that the company proposed to undertake a renounceable rights issue of new ordinary shares together with free detachable warrants.

The stock exchange said that as the announcement of the books closing date was only made on Oct 26 after trading hours, there was a notice of less than one day and the holders of Jaks warrants were essentially deprived of the opportunity to make a decision in respect of the adjustments. - FMT