GETS Global surges to fresh peak despite being slapped with UMA three times
KUALA LUMPUR (Nov 16): GETS Global Bhd’s share price surged as much as 88 sen or 27.76% to a record high of RM4.05 in morning trade on Bursa Malaysia today despite the company receiving three unusual market activity (UMA) queries since August and as investors weighed the company’s proposed diversification into glove manufacturing.
At 10.51am, GETS Global had pared gains to RM4.02, giving the stock a market capitalisation of about RM399.42 million. The counter saw 8.92 million shares change hands.
"We on Sept 8, 2020 entered into subscription agreements with investors, whereby the investors will subscribe to an aggregate amount of 158 million placement shares at an issue price of 55 sen per placement share, to be satisfied in full via cash, in accordance with terms and conditions of the respective subscription agreements.
"Upon the subscription agreements being declared unconditional, ADA Capital Investments Ltd will emerge as our largest shareholder with a shareholding of 45.07%, and the shareholding of [GETS Global major shareholder] Teong Lian Aik will decrease from 31.87% to 14.14%,” GETS Global said.
GETS Global said it is of the view that the proposed diversification would allow the group to capitalise on favourable long-term prospects for the glove industry and expand the company’s income stream, thereby reducing reliance on its existing bus operations.
According to GETS Global, shareholders are scheduled to vote on the company’s proposals in an extraordinary general meeting (EGM) on Nov 27 at 4pm.
Meanwhile, Bursa filings show that GETS Global was issued the UMA queries on Aug 26, Oct 20 and last Thursday respectively. Even so, its share price has risen to the current level from nine sen on Aug 3.
Last Thursday, GETS Global said in a reply to Bursa's UMA query that there was no previously unannounced corporate development in relation to the group's business and affairs that may have accounted for the share trading activity.
Meanwhile, theedgemarkets.com, quoting sources familiar with the matter, reported previously that investors who intend to buy shares in GETS Global and Vivocom Intl Holdings Bhd via RHB must now have cash or securities as collateral in their accounts in order to execute purchase orders.
It was reported that the collateral requirement comes after a meteoric rise in the share prices of both companies. The requirement reportedly takes effect today.