a day ago
- Business
- New Straits Times
NexG shares plunge as investors baulk at foray into property, construction
KUALA LUMPUR: NexG Bhd, formerly known as Datasonic Group Bhd, saw its share price plunge today as investors reacted to the company's foray into the property and construction sectors.
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.
