Kinsteel shares plunge after extension rejected by Bursa

KUALA LUMPUR: Shares in Kinsteel Bhd, a Practice Note 17 company, plunged by as low as 80% in active trade yesterday even as its stock suspension was imminent.

The company has failed to submit its regularisation plan to Bursa Malaysia within the stipulated timeframe.

Bursa had rejected its application for a further extension of time to submit its regularisation plan.

The stock fell 1.5 sen at its close, or 60%, after experiencing a slight rebound at 1 sen from its record low of 0.5 sen, with 47.86 million shares changing hands.

It will be suspended with effect from Jan 5, 2018.

The company will be delisted on Jan 9 unless an appeal is submitted to Bursa Malaysia on or before Jan 4, according to a Bursa announcement.

“In the event the company submits an appeal to Bursa, it is required to make an announcement of the appeal and that the removal of the securities of the company on Jan 4 will be deferred pending the decision of appeal by Bursa,” it said.

Upon its delisting, the company will still continue to exist but as an unlisted entity.

The company will still be able to continue its operations and business and proceed with its corporate restructuring. Its shareholders can still be rewarded by the company’s performance.