PETALING JAYA: Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query to Computer Forms Malaysia Bhd today following the sharp fall in the price of its shares recently.
At today’s close, its shares tumbled 63 sen, or 29.72%, to RM1.49 with 2.58 million shares transacted.
The computer form printer made waves early this year after it tied up a partnership with Thai electric vehicle (EV) giant Energy Absolute PCL (EA), founded by the “Elon Musk of Thailand” Somphote Ahunai.
The steep fall shaved RM168.58 million off its value today, with its market capitalisation settling at RM398.5 million. In fact, the stock, which was at RM2.71 last Thursday, has fallen 45.02% since then.
“Investors are advised to take note of the company’s reply to the above UMA query, which will be posted on Bursa Malaysia’s website under the Company Announcements (section) when making their investment decision,” the exchange said in a statement today.
Bursa Malaysia UMA queried the company on whether there is any corporate development relating to the group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation or discussions.
The regulator also asked if there is any rumour or report concerning its business and affairs that may account for the recent trading activity.
Computer Forms is engaged in the printing and distribution of computer forms, stock forms, and specialised forms. It operates through four segments, namely business forms and data print services, commercial printing, flexible packaging, and property management.
Stamp of approval
Things were looking up for Computer Forms after it entered a heads-of-agreement (HOA) with EA to jointly produce and distribute electric vehicles (EV), lithium-ion batteries and charging platforms.
Their partnership with EA was given the thumbs up by Prime Minister Anwar Ibrahim, after Somphote and his delegation paid him a courtesy call in early January. He lauded their efforts, through his social media channels, in promoting green technology in Malaysia.
In his Facebook post on Jan 5, Anwar said the joint-venture will build an EV manufacturing facility specifically for the transportation sector such as electric buses, electric school buses, electric boats, electric motorcycles, EV batteries, electric trains, mobile electric cars, and others, worth a total of RM5 billion.
Investors were supercharged by the positive vibes, pushing the shares to an all-time high of RM2.90 on Jan 5, giving the group a market capitalisation of RM756.9 million. However, the high was very short lived as shares tumbled back to RM2.60 the very next day.
At that time, some investors and market observers were mystified as to why EA, which has a market cap of about RM37 billion, was tying up with a relatively small company with no known track record in the EV industry.
The group has been performing well on the stock charts despite announcing last month a net loss of RM1.57 million for the first nine months of FY2023 from a net profit of RM61.91 million in the corresponding period a year earlier
At press time, Computer Forms had yet to respond to Bursa’s UMA query. - FMT
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