KUALA LUMPUR: Shares in construction company Widad Group Bhd hitting a three month high of nine sen in active trade on Monday.
It was one of the most actively traded stocks with 68.2 million shares changing hands in the first four horus of trading.
The counter rose 12.50 per cent or 1 sen to a high of 9 sen in early trade, before paring gains to trade at 8.5 sen a share at 12nn, giving it a market capitalisation at RM263.2 million.
In early January this year, Bursa Malaysia Securities Bhd issued an unusual market activity (UMA) query to Widad Group Bhd on the sharp fall in the price of the company's share price today.In response to this, Widad revealed that the group is discussing several business proposals.
Other than these discussions, which are at its preliminary stages, it said in a bourse filing that it has no idea what could be behind the unusual trading activity seen.
According to its website, Widad has actively participated in numerous government contracts.
One of the current projects listed on the website is a half-a-billion ringgit contract to provide facilities management services to Istana Negara.
Separately, Widad's biggest shareholder, Tan Sri Muhammad Ikmal Opat Abdullah has cut his stake in the group down from 28.376 per cent to 16.013 per cent since January this year, in what his representative told an english daily was due to margin calls on shares held by Widad Business Group Sdn Bhd (WBG) .
Margin calls are request for funds from brokers to top up brokerage accounts to meet minimum capital requirements.
Year-to-date the stock has fallen 82 per cent.
Muhammad Ikmal hold a 16.273 per cent deemed interest through WBG and his son lham Widad Muhammad Ikmal Opat's interest.
This is a far cry from the 75 per cent stake he used to own in 2020.
Muhammad Ikmal gained control of Widad in 2018 when his private vehicle, Widad Business Group (WBG), undertook a reverse takeover of industrial labels manufacturer Ideal Jacobs (M) Corp Bhd and changed its name to Widad Group.
Widad reported a net loss of RM4.3 million for the first quarter ended Mar 31, 2024, on revenue of RM29.7 million. Revenue was half of the RM62.8 million in recorded in the first quarter of financial year 2023.