Hot Stock High-5 falls 48% after Bursa rejects regularisation plan

by **Cals** Fri 08 Aug 2014, 03:08

Hot Stock High-5 falls 48% after Bursa rejects regularisation plan

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Thursday, 07 August 2014 12:11

KUALA LUMPUR (Aug 7): High-5 Conglomerate Bhd shares fell 47.5% in active trade on news that bourse regulator Bursa Malaysia had dashed the Practice Note 17 bread manufacturer's regularisation plan.

At 11:30am, High-5 fell four sen to 4.5 sen with some 47 million shares done. The stock was the sixth most-active entity on the exchange.

Analysts said the fall in High-5's share price was not unexpected.

"Shares of High-5 Conglomerate will not be doing the proverbial “high five” today as its regularisation plan has been rejected by the authorities, and now faces suspension and de-listing on August 14 and September 10 respectively.

"Going by the recent rejection (Bina Goodyear) just a few days ago which saw a subsequent 58% nose-dive in its share price, the same could likely occur in this instance. So, be wary!" Public Investment Bank Bhd wrote in a note today.

Bursa Malaysia has rejected High-5's regularisation plan because the company had not satisfactorily addressed the regulator’s concerns about the ability of the revised plan to resolve the latter's accumulated losses.

“It is uncertain about the ability of High-5 to fully eliminate the accumulated losses under the revised proposed regularisation plan in the near future,” Bursa Malaysia said.

The Edge Financial Daily, which quoted a source, reported that interim funders of High-5 remained committed to High-5, particularly after injecting close to RM20 million into High-5 over the past one year.