Cape EMS tumbles to record low on auditor resignation
KUALA LUMPUR: Shares of Cape EMS Bhd tumbled 17.02 per cent to a morning low of 19.5 sen in active trades, after the group announced the resignation of its external auditors, Grant Thornton Malaysia PLT, due to resource constraints.
The stock opened 2.13 per cent lower at 23 sen from yesterday's close of 23.5 sen before slipping further to 20.5 sen, down 12.77 per cent, by 10.23am.
This marks a fresh record low since the company made its Main Market debut on March 10, 2023. The previous low was 21.5 sen, logged on April 9 this year.
At the time of writing, a total of 20.95 million shares had changed hands, the counter's busiest trading day in nearly three months. The stock's highest single-day volume this year was 57.96 million shares on March 3.
Year-to-date, Cape EMS shares have fallen nearly 49 per cent from 38 sen, extending a broader downtrend following a strong debut last year.
The counter had surged 67 per cent on its first day of trading in March 2023, closing at RM1.50 against its initial public offering price of 90 sen.
Cape EMS, an electronics manufacturing services provider, said yesterday that its external auditor had tendered its resignation via a written notice dated May 28.
The resignation, citing resource constraints, takes effect on June 18 under Section 281(2) of the Companies Act 2016.
The company said it will appoint a new audit firm and announce the replacement in due course. It also confirmed there were no other matters requiring shareholder attention.
In March, Cape EMS saw the emergence of a new single-largest shareholder, Chung Chee Yang, who acquired an 11.14 per cent stake via open market purchases. Chung is also a substantial shareholder in Cypark Resources Bhd.
Earlier in February, the group outlined plans to expand into the renewable energy sector to diversify earnings and support Malaysia's transition to a greener economy.
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