KUALA LUMPUR (Jan 16): Krisassets Holdings Bhd rose as much as five times its theoretical ex-dividend and capital repayment price of six sen in heavy trade as investors accumulated shares of the real estate firm, which may be perceived as a "penny stock" now, dealers said.
Krisassets is making a cash distribution of RM2.60 a share, comprising a capital repayment and special dividend. The firm will make the payment on Feb 6.
At 3.37pm, Krisassets -- the second largest gainer and fourth most active stock on Bursa Malaysia -- was trading at 24 sen, with 62 million shares done, after rising as much as 24 sen to 30 sen earlier. The theoretical ex-dividend price of six sen is derived by subtracting the RM2.60 cash distribution from the stock’s closing price of RM2.66 a day earlier.
At current levels, a dealer said investors may be seeing Krisassets as a penny stock with substantial trading volume. "Thus, investors are jumping into the stock," the dealer told theedgemalaysia.com over the telephone on Wednesday.
Meanwhile, Krisassets' call warrants -- the fifth largest gainer and second most active units -- were changing hands at 18 sen at 3.38pm, with 72 million shares done, after almost quadrupling to a high of 23.5 sen earlier. Maybank Investment Bank is the issuer of the call warrants that expire on June 28, 2013.
Krisassets said in May 2012 that it planned to dispose of Mid Valley Megamall and The Gardens to IGB REIT for RM4.61 billion. The transaction was to be satisfied by the issuance of 3.4 billion new units in IGB REIT at RM1 each, while the balance of RM1.21 billion would be settled in cash.
Krisassets had distributed to its shareholders 2.73 billion out of the 3.4 billion units in IGB REIT under a distribution-in-specie exercise that was completed last October.
In conjunction with the disposals, Krisassets planned to reward its shareholders with a single-tier interim dividend and capital repayment of RM15.22 million and RM1.25 billion respectively. The company said the capital repayment would be financed with the credit derived from its capital reduction and share-premium account cancellation.
Shareholders of Krisassets, a 63.5%-owned subsidiary of IGB Corp Bhd, approved the capital repayment in June last year.