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As TAFI (7211) TAFI INDUSTRIES BHDI shares rise to record high, group says it it mulling a bonus issue

KUALA LUMPUR (Nov 10): TAFI Industries Bhd, whose shares have surged to an all-time high on strong buying interest, said it is considering a bonus issue.

Responding to an unusual market activity (UMA) query from Bursa Malaysia on Wednesday (Nov 10), the furniture manufacturer said it was in the midst of deliberating on a corporate transaction to enhance the tradeability of its shares.

"We are not aware of any other possible explanation to account for the trading activity," said TAFI, whose shares hit limit up on Tuesday (Nov 9).

Bursa issued a follow-up query later on Wednesday, seeking details of the corporate transaction, and the company replied that it involved a potential bonus issue.

"However, TAFI wishes to reiterate that the said corporate exercise is still currently being deliberated and nothing has been confirmed or materialised at this juncture," the company said. "As such, TAFI shall only make the necessary announcement upon finalisation of the same and after obtaining its board of directors’ approval for the corporate exercise."

TAFI has been busy with a series of corporate developments after Armani Synergy Sdn Bhd, controlled by Datuk Seri Bryan Wong Sze Chien, emerged as its controlling shareholder by acquiring a 51.01% stake in the company via an unconditional mandatory takeover in September 2020.

On Nov 5, 2020, TAFI announced that it is diversifying into property development and construction, after entering into a conditional joint venture with E Prompt Sdn Bhd to jointly develop 33 acres of land in Ringlet, Cameron Highlands, with an estimated total gross development value (GDV) of RM390 million and a gross development cost of RM260 million.

Then, on Aug 25, 2021, it signed a memorandum of understanding with kitchen manufacturer Signature Group and OMG Free Reno Sdn Bhd for the company to provide rent-to-own payment service for renovations and the purchase of furniture, accessories and lighting.

More recently, on Sep 22, 2021, TAFI inked five joint venture agreements to diversify into developing mixed housing projects in Pahang with an estimated total GDV of RM621.5 million.

For the second quarter ended June 30, 2021, the company narrowed its losses to RM744,000 from RM1.31 million a year earlier, as revenue increased slightly to RM5.91 million from RM5.46 million.

TAFI's share price hit limit up on Tuesday to close at a record high of RM3.54, after rising 81 sen or 29.67% in active trade. A total of 48.1 million shares were traded, eight times its 200-day average.

The counter continued its upwards trajectory on Wednesday, closing 29 sen or 8.19% higher at a fresh high of RM3.83, giving the company a market capitalisation of RM474.67 million.

http://www.theedgemarkets.com/article/tafi-shares-rise-record-high-group-says-it-it-mulling-bonus-issue

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