Prestar Resources Bhd (-ve)
TRADING of shares in Prestar Resources Bhd (fundamental: 0.8/3, valuation: 2.4/3) triggered our proprietary momentum algorithm for the third time this year.
The stock slid half a sen or 0.7% to close at 71 sen yesterday. At the closing bell, the steel maker — now valued at RM138.95 million — recorded a total trading volume of 3.75 million shares, sharply higher than its 200-day average of 119,984 shares.
Prestar had initially planned to list its 51%-owned manufacturing and trading subsidiary Tashin Steel Sdn Bhd on the ACE Market, via special purpose vehicle Tashin Holdings Bhd, by end-2018. This has been delayed to May 2019, its latest circular dated Feb 25 showed.
Tashin will be issuing 59.33 million new shares, representing 17% of its enlarged share capital, at an indicative offer price of 65 sen per share. Funds raised will be used for its expansion into the manufacturing of wire mesh products.