PETALING JAYA: Leform Bhd’s shares plunged as much as or 58.16% or 28.5 sen this afternoon, prompting Bursa Malaysia Securities (Bursa Securities) to issue an unusual market activity (UMA) query to the steel products manufacturer and trader.
It touched a low of 20.5 sen from yesterday’s closing price of 49 sen, wiping RM425 million off its market capitalisation in the process.
The stock managed to claw back some of its losses, ending the day down 44.9% or 22 sen at 27 sen, valuing the group at RM400 million. A total of 215.31 million shares were traded.
Bursa Securities asked Leform to disclose if there were any corporate developments, or any rumour or report concerning its business and affairs that may account for the trading activity today.
The group has yet to reply to the UMA query.
Since its listing on Nov 30, 2022, Leform’s performance has been underwhelming, posting losses in three of the five reported quarters.
Despite this, the stock had been on a three-month bull run that saw its shares more than double in value until the bubble burst today.
For the nine months ended Sept 30, 2023 (9M FY2023), Leform recorded a net loss of RM8.7 million, from a net profit of RM8.41 million in the same period last year. It posted a RM11 million loss in Q3 FY2023.
It attributed the performance to lower revenue, deteriorating margins and higher expenses due to additional deliveries, higher electricity costs and higher finance costs. - FMT
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