Bursa: Dataprep investors to exercise caution

The company’s shares have soared over 1,158% since January, hitting its upper trading limit on multiple occasions


BURSA Malaysia Securities Bhd has advised investors to exercise caution in the trading of Dataprep Holdings Bhd’s shares that soared to RM3.15 from 16.5 sen in mid-February without a fundamental change in its business or financial performance.

Dataprep’s share price has risen by RM1.11 in the past two trading days to RM3.15 yesterday, giving it a market capitalisation of RM1.92 billion.

“Bursa Malaysia Securities would like to advise investors to exercise caution and make informed decisions in the trading of Dataprep’s shares.

“The exchange will not hesitate to take appropriate regulatory action to ensure fair and orderly trading of Dataprep’s shares,” it said in a statement yesterday.

The exchange had issued an unusual market activity query to Dataprep on March 1, and the group responded by stating it was not aware of the reason behind the sharp increase of its share price.

Dataprep’s share price has been on an upward trend since mid-February.

The rally was triggered after the group announced plans to acquire a 51% stake in Ridaa Associates Sdn Bhd, with an aim of expanding the group’s multimedia and communication revenue stream.

Dataprep, in its third-quarter ended June 30, 2020, stated that the acquisition will allow the group to pursue opportunities to build, instal, operate, maintain and manage telecommunication tower assets in Malaysia.

Its venture into the telecommunication towers project is aligned with the National Fiberisation and Connectivity Plan for the foundation of the country’s digital infrastructure transition to 5G technology.

In addition to its takeover plan, Dataprep’s share price has also been boosted by developments linked to Widad Business Group Sdn Bhd (WBG).

WBG is owned by Tan Sri Muhammad Ikmal Opat Abdullah, who is also a substantial holder of Dataprep.

Muhammad Ikmal sold 11.11 million Dataprep’s shares on Feb 16 in an off-market deal before acquiring 200,000 shares via an open market transaction on March 1, which took his stake to 54.21%.

He has also been actively trading his shares in Widad Group Bhd, with the acquisition of some 366.96 million shares and disposal of 420.16 million shares.

Previously, The Malaysian Reserve reported that Dataprep had emerged as the biggest gainer after its share price hit another record high to close at RM2.14 last Friday.

The company’s shares have soared over 1,158% since January, hitting its upper trading limit on multiple occasions which pushed the counter to reap nearly RM1.2 billion in market value in the last two months.

The company now has a market valuation that is bigger than Boustead Holdings Bhd (RM1.2 billion), Pharmaniaga Bhd (RM960.46 million) and Berjaya Corp Bhd (RM900.36 million), among others.

Since the beginning of the year, Dataprep’s shares have risen by 1,650%.

Read our previous report here

Dataprep leads gainers as value tops RM1b