KUALA LUMPUR: Patimas Computers Bhd remained the most actively traded stock yesterday, with 102.7 million shares traded.
The stock, which has been in the limelight of late, closed flat at eight sen yesterday. It fluctuated between the lower and flat levels for most of the trading day amid profit taking and investor doubts over the company’s prospects.
The stock leapt as much as 38% to 16.5 sen in Monday morning trade after the company announced that its new substantial shareholders plan to call for an EGM to remove the existing directors and appoint new ones.
But at the close on Monday, it fell four sen or 33.3% to eight sen on trades of 385 million shares on profit taking.
Patimas told Bursa Malaysia last Friday it had received notice from Syawaras Sdn Bhd and CPE Growth Capital Ltd requesting an EGM for the removal of Datuk Ng Back Heang, Robert Daniel Tan Kim Leng and Law Siew Ngoh. The three jointly hold less than 1% equity interest in Patimas.
Syawaras and CPE, which collectively own some 12% equity interest in Patimas, want to appoint Datuk Seri Abdul Azim Mohd Zabidi, Datuk Nur Jazlan Mohamed, and Lawrence Kwan Ho Ma to the board.
Nur Jazlan is chairman of property developer UDA Holdings Bhd while former Umno treasurer-general Abdul Azim owns Syawaras, which holds 7% equity interest in Patimas. Hong Kong-based CPE has become a substantial shareholder in Patimas after acquiring 5.2%.
This is the second company, after Tiger Synergy Bhd, where Azim wants to remove the incumbent after buying a stake.
Chinese newspaper Nanyang Siang Pau reported yesterday the trio have agreed to join hands to take control of Patimas. It was reported that the company wanted to get government-linked IT projects for Patimas.
But a senior dealer told theedgemalaysia.com: “Investors took profit yesterday [Monday] after the news. It continued today [yesterday] as they are unsure about the future of the company.”
Investors’ doubts stem from the fact that the newcomers have not come out with any solid business plan to help the Practice Note 17 company out of its current predicament.
Patimas’ huge share volatility in the past month has not helped either. The stock had risen sharply from 3.5 sen in early January to 21 sen in mid-January, followed by a plunge to the current level amid wild price swings.
On Jan 17, Bursa Malaysia warned investors to exercise caution in trading of the stock.
This article first appeared in The Edge Financial Daily, on February 6, 2013.