NexG shares plunge as investors baulk at foray into property, construction
The counter fell as much as 14 sen or 26.17 per cent to a low of 39.5 sen, its weakest level in over a month.
At the midday break, it was still down 13 sen or 23.36 per cent at 41 sen, giving the company a market capitalisation of RM1.36 billion.
This could mark its steepest single-day decline since October 2018.
NexG was the most actively traded stock on Bursa Malaysia, with nearly 115 million shares changing hands.
It opened the day at 53 sen, touched a high of 54 sen, and sank to its intraday low of 39 sen before settling at 41 sen for the lunch break.
The sell-off comes after NexG announced the acquisition of a 32.61 per cent stake and 414.31 million warrants in Classita Holdings Bhd for RM76.78 million, marking its entry into the construction and property development space.
The acquisition makes NexG the single largest shareholder in Classita.
Classita, a CIDB G7-certified contractor, has proposed rebranding to NexG Bina Bhd to align with a new mandate focusing on affordable housing, public-sector infrastructure and government-linked projects.
NexG said the acquisition, along with the warrants, offers the flexibility to raise its stake further and tap into an estimated RM60 million-RM70 billion annual public-sector project pipeline.
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The Star
4 hours ago
- The Star
NexG plunges, Classita surges on RM77mil deal
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Free Malaysia Today
11 hours ago
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Ex-IGP Razarudin appointed Classita Holdings' non-executive chairman
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The Star
15 hours ago
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Intraday short selling for NexG suspended
KUALA LUMPUR: NexG Bhd's intraday short selling (IDSS) is suspended for the rest of the day following a sharp plunge in its share price. The counter tumbled 28.04%, or 15 sen to 38.5 sen with 161.53 million shares traded at 3.51 pm. Bursa Malaysia suspended the IDSS of the security as the last done price dropped more than 15 sen from the reference price. The short selling under IDSS will only be activated on Aug 12 at 8.30 am. NexG announced that it is purchasing a 32.61% equity interest and 414.31 million warrants in Classita Holdings Bhd for a total cash consideration of RM76.78mil. BIMB Securities is neutral on the deal's fundamentals as the near-term earnings impact is minimal, while long-term execution risk remains high given Classita's volatile track record. Nevertheless, the share price has rallied in recent months, with much of the perceived upside highly likely has been priced in. 'Hence, we are downgrading our call from 'hold' to 'sell', while keeping our target price at 45 sen based on 18x PER (+1SD above average 3-year forward PER) applied to FY26F diluted EPS of 2.5 sen,' BIMB said.
