Overwhelming interest in Luster shares and warrants

Overwhelming interest in Luster shares and warrants
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 04 June 2013 10:14

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KUALA LUMPUR: LUSTER INDUSTRIES BHD [] shares and warrants were the two most actively traded counters on Bursa Malaysia yesterday.

The company recently completed its private placement of 270 million new shares plus 216 million warrants. Those securities were listed on the stock exchange last Thursday.

Some 313.9 million Luster shares were traded yesterday. The trading volume was equivalent to 23% of the precision plastic component manufacturer’s issued share capital of 1.366 billion shares.

The stock has more than doubled in price since last month — having climbed from 9 sen to 23.5 sen yesterday.

The price of its warrant has surged 17.4% or two sen, to close at 13.5 sen — a record high since the derivatives were listed in June last year. Some 174 million units changed hands yesterday.

Last Friday, Luster announced a net profit of RM501,000 in its first quarter ended March 31 (1QFY13) versus a net loss of RM3.04 million in 1QFY12. Revenue jumped to RM29.65 million from RM8.96 million.

Luster was lifted from the PN17 category in March after the company finalised its regularisation scheme.


Bursa had in May 2008 placed Luster under PN17 after the company’s losses widened — having taken into account that its shareholders’ equity on a consolidated basis amounting to RM25.19 million was less than half of its issued and paid-up share capital of RM61.18 million as at Dec 31, 2007, according to earlier filings.

During the year, the company said its net loss had widened to RM44.64 million from a net loss of RM5.4 million a year earlier.

Luster had in July 2009 come out with a regularisation plan which included a capital reduction, share split, rights issue, private placement and repayment of bank loans to rejuvenate its financials.