by SHAHEERA AZNAM SHAH / pic credit: dp.com.my

DATAPREP Holdings Bhd fixed the price of its first tranche of private placement shares at RM1.31 per share, well below its RM2.57 share price close yesterday.

Dataprep’s share price has been on a volatile ride in the past two months with the stock rising from 16.5 sen on Feb 11 to a high of RM4.13 on March 16 before falling to a low of 72.5 sen on April 13 and before rallying sharply in the past six trading days to close at RM2.57 yesterday.

After its price rose limit-up last Friday and on Monday, the stock traded at RM2 on Tuesday due to trading rules before rising some 57 sen or 28.5% yesterday.

“According to trading rules, after two consecutive limit-ups, the stock can only trade at the limit price or below on the third day, which is why trading in the counter came to a standstill at RM2 on Tuesday.

The price action in Dataprep suggests the stock has been cornered by its operator(s),” said a trader with a local brokerage.

He added that the decision to not limit up the shares yesterday could be a tactical move to not attract regulator interest.

A total of 96.4 million Dataprep shares exchanged hands yesterday. The company has some 617 million shares outstanding, with float accounting for 245.4 million shares according to Bloomberg.

At yesterday’s close, Dataprep was valued at RM1.59 billion.

There has been no fundamental change in the information and communications technology solution provider’s business prospects and has been slapped with unusual market activity queries followed by an advisory by the exchange to investors to exercise caution in the trading of the company’s shares on March 10.

Dataprep, on its part, noted that it was “not aware of any” developments in the company to explain the share price action over the period.

Trading in Dataprep’s shares picked up sharply after it acquired a 51% interest in Ridaa Associates Sdn Bhd, which would expand the group’s multimedia and communication revenue stream.

The group also deemed its venture into the telecommunication towers project aligned with Malaysia’s National Fiberisation and Connectivity Plan and supports the country’s digital infrastructure transition to 5G technology.