Serba Dinamik woes hit SCIB, KPower

by NUR HANANI AZMAN / graphic by MZUKRI

SHARES of Sarawak Consolidated Industries Bhd (SCIB) and KPower Bhd came under fresh selling pressure as inventors sold down SCIB stock ahead of a trading suspension much like Serba Dinamik Holdings Bhd. 

SCIB’s share price fell 11.5 sen to 29 sen while KPower closed seven sen lower at 61 after SCIB announced its shares will be suspended from trading starting Nov 9 after it failed to get an extension from Bursa Malaysia Securities Bhd to file its 2021 annual report bytheendofOct31duetoitsnew external auditors unable to complete its work on the stated time.

On Jan 27, 2021, SCIB shares hit a high of RM2.99 before edging to current lows. 

All three companies have Serba Dinamik Group MD and CEO Datuk Dr Mohd Karim Abdullah as a common major shareholder. 

The fresh sell-off in SCIB and KPower comes as the suspension on the trading in Serba Dinamik’s shares remained in effect after the company failed to comply with the exchange directive to make an announcement on the findings of the special independent review (SIR) on audit issues flagged by its former external auditor, KPMG Ltd. 

Trading in Serba Dinamik’s securities has been suspended since Oct 22, 2021 and the suspension will continue until further notice, the company stated in an exchange filing. 

Mohd Karim told The Malaysian Reserve that the group is unable to meet Bursa Malaysia’s deadline because the audit process remains in progress. 

He said the SIR auditor, Ernst & Young Consulting Sdn Bhd, needs the company to clarify a few things before proceeding to release its audit findings. 

Serba Dinamik was last traded at 35 sen a share. Like Serba Dinamik, SCIB had also replaced KPMG as its external auditor. 

“Despite the recent adverse news on the company, we are committed to exhaust all efforts to ensure the company adheres to relevant regulations and meets the deadline. Nevertheless, we are unable to meet the deadline because it is too tight, even with Nexia SSY Plt (newly appointed auditor) fully committed to finishing the audit. 

“We had submitted an appeal to Bursa Securities but have received further queries from Bursa Securities on Oct 26, 2021 seeking some clarifications on the appeal. The updated appeal has been submitted to Bursa Securities on the same day,” SCIB group MD and CEO Rosland Othman stated in a release. 

Meanwhile, SCIB has also decided to abort the fourth tranche of a placement exercise and refund the proceeds raised due to the uncertain market conditions, its filing yesterday stated.