Latest news with #PracticeNote17
New Straits Times
8 hours ago
- Business
- New Straits Times
Pharmaniaga completes regularisation plan, set to exit PN17 by 2026
KUALA LUMPUR: Pharmaniaga Bhd has completed its Practice Note 17 (PN17) regularisation plan following the completion of its capital reduction exercise through the cancellation of RM520 million in issued share capital. In a statement today, the pharmaceutical company said the step firmly sets the group on course to exit the PN17 status latest by the first quarter (1Q) of 2026. "The capital reduction exercise, which involved the cancellation of RM520 million in issued share capital, was completed after confirmation was received today from the Registrar of Companies that all statutory requirements have been fulfilled. "Following the completion of this exercise, the issued share capital of the group is RM249.62 million, comprising 6.55 billion shares," it said. Pharmaniaga fell into PN17 status in February 2023, dragged by its RM552.3 million provision for "slow-moving inventories" of COVID-19 vaccines. At the close of trading today, the counter finished unchanged at 18.5 sen, with 28.69 million shares changing hands.
New Straits Times
2 days ago
- Business
- New Straits Times
Alam Maritim jumps nearly 24pct in active trade
KUALA LUMPUR: Shares of Alam Maritim Resources Bhd jumped nearly 24 per cent in morning trade as the stock continued to stabilise following a price adjustment from its share consolidation exercise in early July. The counter opened slightly higher, up one sen or 5.26 per cent, before climbing as much as 4.5 sen or 23.68 per cent to 23.5 sen in active trade. At the time of writing, the stock had eased to 22.5 sen, still up 3.5 sen or 15.56 per cent, with over 10 million shares changing hands, its busiest trading day in more than a month. Alam Maritim completed a 10-to-1 share consolidation on July 3, with the stock trading on an adjusted basis starting July 1, rising from 2.5 sen to 26.5 sen on that day. Since the price adjustment, the stock has fallen 7.5 sen or 28.3 per cent from its adjusted high of 26.5 sen, closing at 19 sen yesterday after touching a low of 17.5 sen on Aug 1. Last Friday, the company confirmed that its ongoing rights issue is part of efforts to restructure its debts and exit its Practice Note 17 (PN17) status. The rights issue opened on July 31. Eligible shareholders have until Aug 15 to subscribe to their entitled shares or apply for excess shares. Trading of provisional rights ends on Aug 7. Under the offer, shareholders are entitled to subscribe for three new shares for every four shares held, at 12 sen per share. For every four rights shares subscribed, they will also receive one free warrant, exercisable at 30 sen per share. The company expects to raise about RM13.8 million, most of which will go towards settling debts with creditors under its court-approved restructuring plan. Alam Maritim has been classified as a PN17 company since October 2022, after its auditors issued a disclaimer of opinion on its financial statements for the period ended June 30, 2022. The company is an offshore service provider specialising in subsea services and offshore support vessel (OSV) operations for the oil and gas industry. Its core services include underwater inspection, repair and maintenance, vessel chartering and marine construction. For the third quarter ended March 31, 2025, Alam Maritim posted a net profit of RM20.7 million, up from RM18.5 million a year earlier, mainly due to a RM19.5 million reversal of impairment on investments in jointly controlled entities. However, revenue for the quarter fell 22.7 per cent to RM49.3 million from RM63.8 million, primarily due to weaker contributions from the OSV and subsea segments.
New Straits Times
7 days ago
- Business
- New Straits Times
Pharmaniaga completes fundraising, edges closer to PN17 exit
KUALA LUMPUR: Pharmaniaga Bhd has made headway in its regularisation plan with the completion of its rights issue and private placement exercises, moving closer to exiting its Practice Note 17 (PN17) status. The pharmaceutical company said a total of 3.5 billion renounceable rights shares were fully subscribed, with an oversubscription rate of 26.14 per cent, indicating strong backing and confidence from existing shareholders. Additionally, the private placement exercise brought in 19 new investors and involved 1.6 billion shares, raising a total of RM223.7 million. "As both fundraising exercises have been completed, the group is set to conclude the final phase of its recovery plan, the capital reduction exercise which is targeted for completion by mid-August 2025. "This marks a major step forward in Pharmaniaga's recovery and efforts to exit PN17 status by the first quarter of 2026," it said. The group added that despite the fresh equity injection, Lembaga Tabung Angkatan Tentera and Boustead Holdings Bhd continue to be its major shareholders, collectively holding 43.9 per cent—comprising 8.7 per cent and 35.2 per cent stakes respectively. Pharmaniaga remains a government-linked company, maintaining its focus on national interests and the welfare of the Malaysian armed forces. Managing director Datuk Zulkifli Jafar said the oversubscription of the rights issue demonstrates strong market confidence in Pharmaniaga's business fundamentals, recovery strategy, and leadership. "The group also views the participation of the 19 new institutional and reputable investors in the private placement exercise as a clear endorsement, that aligns with our broader objective of contributing to Malaysia's healthcare resilience and pharmaceutical self-sufficiency, a shared national aspiration," he said. Zulkifli said the improved balance sheet allows the group to lower its debt and expand operations, particularly in high-impact areas like the development of human insulin, vaccines, and other generic medicines. "We are currently advancing the development of Malaysia's first locally owned insulin and vaccine production facilities," he added. Pharmaniaga's shares ended on a positive note, rising 9.38 per cent or 1.5 sen to close at 17.5 sen, with 218.5 million shares traded.
New Straits Times
31-07-2025
- Business
- New Straits Times
Ireka shares surge 66pct, extending meteoric two-day rally
KUALA LUMPUR: Ireka Corp Bhd saw its share price soar by as much as 66 per cent during morning trade today, continuing its meteoric rally following a 63.89 per cent gain the previous day. The stock climbed 66 per cent to 30 sen during the morning session from its previous close of 18 sen. Yesterday, Bursa Malaysia issued an unusual market activity (UMA) query to the company in response to the sharp rise in both price and trading volume of Ireka shares on July 30, 2025. The market regulator has requested the company to disclose any material developments, rumours, or other factors that may explain the unusual trading activity. As of press time, Ireka has not responded to the query. Bursa said the company's response will be made available on its official website under the company announcements section once received. The surge in share price comes amid ongoing corporate developments involving a major infrastructure contract. On July 28, Ireka received a notice of mutual termination concerning its RM1.07 billion subcontract with Gammerlite Sdn Bhd for the Pan Borneo Highway project, following upstream funding constraints and the exit of the main contractor. The termination proposal was triggered by the lapse of a project operation agreement between main contractor MTD Construction Sdn Bhd and Sabah-based Gammerlite, which was terminated on June 30 due to Gammerlite's failure to secure the necessary funding. On July 8, Ireka received a mutual termination notice from Gammerlite. Ireka, however, objected to the termination and is currently seeking legal advice to evaluate avenues for cost recovery and fair compensation. "The company is pursuing an equitable settlement for work performed and costs incurred and anticipates legal and administrative expenses in connection with the dispute resolution process," Ireka said in a statement. The company officially entered Practice Note 17 (PN17) status on March 1, 2022, due to its shareholders' equity falling below 50 per cent of its share capital.
New Straits Times
30-07-2025
- Business
- New Straits Times
MMM Group faces suspension, delisting after Bursa rejects PN17 plan
KUALA LUMPUR: Bursa Malaysia Securities has rejected the proposed regularisation plan submitted by MMM Group Bhd, citing concerns over the company's financial sustainability and ability to recover under the plan. In a filing to Bursa Malaysia, MMM said the exchange regulator was not satisfied that the plan met the requirements under Paragraphs 5.4 and 5.5 of Practice Note 17 (PN17), which apply to companies in financial distress. Bursa also flagged several red signals, including a continued decline in revenue for financial year ended March 31, 2024 (FY24) and FY25, despite growth in Malaysia's out-of-home advertising industry. It also raised concerns about the company's profitability, noting that recent profits were largely driven by fair value gains from future projections tied to a collaboration with Setia Media Sdn Bhd, rather than core business operations. Excluding such gains, MMM would have posted losses in both FY24 and FY25. The group also recorded negative operating cash flow of RM3.05 million as at March 31, and its remaining order book stood at RM4.7 million as at end-May. Bursa further noted that the company's proposed capital reduction, which would eliminate its accumulated losses, did not reflect genuine profitability. "The improved shareholders' equity was due to the capital reduction, not profits from business activities," it said. Following the rejection, MMM announced that trading in its securities will be suspended from Aug 7. The company faces delisting on Sept 4, 2025 unless it files an appeal by Aug 29. If MMM submits an appeal within the timeframe, the delisting will be put on hold pending a decision. Bursa clarified that trading will still be suspended on Aug 7, regardless of whether an appeal is pending.
