corporate

Investors push Pertama Digital below RM1 despite management's assurances

KUALA LUMPUR: Investors pushed Pertama Digital Bhd (PDB)'s share price to below RM1 today unconvinced by assurances by the company's management that all was well with the company.

This led Bursa Malaysia Securities to suspend intra-day short selling in the stock for a third consecutive day, within ten minutes of trading.

At the time of writing, PDB's shares fell 29.91 per cent or 33 sen to 78 sen, valuing the company at RM344 million. The stock closed at RM1.12 yesterday and opened at 78 sen today, marking a 30.4 per cent decline.

In a statement yesterday, PDB said it is unaware of any specific reasons for the recent drop in its share price in response to an unusual market activity query by the regulator.

It assured stakeholders that the company remains stable and positioned for long-term growth.

The company has seen significant changes in leadership.

On Sept 27, 2024, non-independent and non-executive director Tan Sri Nik Norzrul Thani Nik Hassan Thani resigned from the board.

Earlier this week, its acting chief executive officer Mohd Reza Mohd Hatta also left the company.

According to Bursa Malaysia Securities' filings, both directors stepped down to pursue personal interests.

As an "affected listed issuer," Pertama Digital was granted a six-month extension until Feb 9, 2025, to submit a regularisation plan to Bursa Malaysia.

This was after the company sold its entire stake in China-based textile unit Be Top Group Ltd for RM70 million on Aug 10, 2022, as part of its shift to becoming a pure-play digital services provider.

Part of its regularisation plans include the proposed acquisition of a controlling stake in biometric security solutions company, Kridentia Tech Sdn Bhd.

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