Dataprep unaware of reasons for fluctuating share price

By NUR HAZIQAH A MALEK

DATAPREP Holdings Bhd said it is unaware of the reasons for its unusual market activity inquired by Bursa Malaysia Securities Bhd.

In a filing to Bursa Malaysia yesterday, the company said it is not aware of the reasons for its share price movements aside from the proposed private placement dated Feb 16 and Feb 23, as well as the proposed acquisition of 510,000 ordinary shares in Ridaa Associates Sdn Bhd.

“Dataprep group has been continuously working for new opportunities to enhance the value of the company.

“The board of directors will make the necessary announcement and comply with Bursa Securities Listing Requirements,” it said in a filing yesterday.

The company’s share price hit a record high of RM1.75 yesterday before settling at RM1.42 at close, with 81.1 million shares changing hands.

The company currently has a market valuation of RM855.69 million. Its share price has surged by RM1.57 or 772% since the start of the year from 18 sen on Jan 4.

In a separate filing, the company provided additional information on its proposed private placement of up to 20% of the total issued shares in the company.

“Based on an illustrative issue price of 31.5 sen per placement share, the gross proceeds to be raised from the proposed private placement are intended to be utilised in the following manner: Working capital requirements within the next 12 months; repayment of bank borrowings within the next 12 months; future investments or projects within 12 to 24 months and estimated expenses for the placement within the immediate future,” it said.

The actual gross proceeds to be raised from the placement are dependent on the issue price and number of placement shares to be issued.

On its entry into the telecommunication industry, the group has identified a potential collaboration but has yet to formalise the arrangement.