KUALA LUMPUR (Dec 18): Pertama Digital Bhd's share price, which opened at RM2.66 in Monday's morning trade, has surged as much as 12.5% to a high of RM2.98, making it one of the top six gainers in Bursa Malaysia on Monday.

At market close, the counter was at RM2.93, up 28 sen or 10.57%, paring some of its losses over the past month after falling from its record high of RM4.65 on Nov 20. The stock, which is down over 35% from a month ago, has a market capitalisation of RM1.28 billion.

The reason for the rebound in Pertama Digital’s share price on Monday is unclear.

Just last month, the intraday short selling (IDSS) of Pertama Digital’s shares were twice suspended, as its shares dived.

The first IDSS suspension was on Nov 21, when Pertama Digital’s share price dropped by over 15% from its previous closing price. The second suspension was on the next day, when the stock dropped a further 94 sen or 26.78% in early trades.

Earlier last month, Pertama Digital announced the cessation of Sivabalan Poobalasingam as its chief financial officer after the end of his contract.

This came less than two weeks after the resignation of CEO Saifullah Akhtar, citing "personal interests” as the reason, on Oct 31. No replacement has been announced for both positions.

In September, Pertama Digital saw the emergence of CGS-CIMB Securities Sdn Bhd as a substantial shareholder, with a 7.588% stake following acquisitions in the open market.

The group's largest shareholder is non-executive chairman Tun Datuk Seri Zaki Tun Azmi, with a 10.07% stake in the company held via Mypay Capital Sdn Bhd.

Other substantial shareholders include executive director Sabri Ab Rahman (10%) and non-executive director Datuk Ahmad Nazri Abdullah (5.06%).

The group has suffered losses for six consecutive quarters. For the nine months ended Sept 30, 2023 (9MFY2023), Pertama Digital recorded a net loss of RM6.61 million, compared to a net profit of RM2.55 million in the previous year's corresponding period, while revenue fell 39.9% to RM4.59 million from RM7.65 million.

In 2022, Pertama Digital was categorised as a company with a level of business that is deemed indequate to warrant continued trading or listing on Bursa Malaysia, following the disposal of its major business, its China-based textile arm Be Top Group Ltd, for RM70 million. The group has been given until Feb 9 next year to submit its plan to Bursa to regularise its condition.

Read also:
Bursa suspends intraday short selling of Pertama Digital
Short selling on Pertama Digital halted again as share price dives further
Pertama Digital CEO Saifullah Akhtar resigns after less than a year at helm