KUALA LUMPUR (Nov 14) - Tiger Synergy Bhd shares declined as much as 1.5% before recouping earlier losses as investors digested news that the property developer has finalised the issue prices for its private placement shares, and that new and existing shareholders have undertaken substantial stock transactions in the open market.
Dealers said Tiger Synergy shares were heavily traded today, partly due to the anticipation of a "potential forced selling" of the shares by stockbrokers.
A dealer told theedgemalaysia.com over telephone that stock broking firms may have to force sell about 46 million Tiger Synergy shares should they fail to receive payments for the units bought by their clients earlier.
At 11.34 am, Tiger Synergy was traded at 34.5 sen, up 2 sen, with some 14 million shares done, making the stock the third most actively traded entity across the bourse. The stock had earlier declined as much as 0.5 sen to 32 sen.
Tiger Synergy has finalised the issue prices for a total of 30.6 million new shares under its private placement, an exercise expected to raise about RM11 million for the firm. On November 2, Tiger Synergy told the exchange that the company had fixed the issue price of the first tranche comprising 12.9 million shares at 31 sen each.
On November 9, Tiger Synergy fixed the price for the second and final portion of 17.7 million shares at 39.5 sen a share, according to bourse updates. The issue prices for both tranches translate into an average of 36 sen per share, derived by dividing its expected proceeds of RM11 million against the 30.6 million new placement shares, according to calculations by the theedgemalaysia.com.
It remains to be seen if the private placement will be attractive into investors as Tiger Synergy shares are currently trading below the 36 sen per share average issue price for the placement units.
Meanwhile, substantial shareholders have undertaken substantial stock transactions in the company.
Tiger Synergy announced to the exchange on November 7 that well-connected Datuk Seri Mohd Nadzmi Mohd Salleh had emerged as a major shareholder after acquiring 5.26% in the firm on November 2. He had bought the shares via his private vehicle Hayat Maya Sdn Bhd, exchange filings show.
Hayat Maya had subsequently bought another 11.16 million Tiger Synergy shares on November 7 in open and offmarket deals, raising its stake to 8.9%, filings indicate. With Nadzmi, who is the former chairman of Proton Holdings Bhd, on board Tiger Synergy, the market could be anticipating that he may acquire more shares in the Tiger Synergy.
Latest updates to the exchange show that Hayat Maya had acquired another 1.5 millio Tiger Synergy shares on November 9 from the open market, increasing its stake to 10.7%.
But coincidentally, Tiger Synergy managing director Datuk Tan Wei Lian has reduced his stake substantially in the company.
Exchange filings show Tan had on November 7 sold 7.64 million shares or 2.4% in the firm via open market transactions. After the disposal, Tan held direct and indirect stakes of 6.8% and 3.3% respectively in the company, filings show.