It opened at RM4.49 and ended the day at RM4.59, up 10 sen on some profit taking after the recent price surge. There were 534,200 shares done. Bursa Securities had queried the company over the sharp rise in price in the shares recently. On Wednesday, the share price surged 42 sen to RM4.49.
However, the board of directors replied they were “not aware of any specific reason to account for the sharp increase in price in the company’s securities recently”.
SEGi said it had recently announced a proposed corporate exercise which it believed had a positive impact on the market. The exercise included a one-into-two share split and a two-for-five bonus issue after the subdivision.
It had also proposed a renounceable rights issue of up to 124.72 million five-year 2010/2015 warrants on the basis of one new warrant for every two subdivided shares at five sen cash per warrant.
“The rationale of the proposals is primarily to reward the existing shareholders of the company for their continuing support in the company, and to provide them with greater participation in the equity of the company in terms of the number of shares held. The proposals are now subject to the approvals of the shareholders at the extraordinary general meeting to be held on Monday, June 28,” it said.
SEGi said it had also earlier announced a revenue of RM54.8 million and a profit before tax of RM13.2 million, up 34.7%, and 50.2% respectively in its first quarter ended March 31, 2010 from a year ago, which it said may have had a positive impact on the share price.
“The company believes another possible explanation to account for the unusual market activity is the current market interest in education stocks,” it said.
Written by Kay
The Edge Malaysia
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