KUALA LUMPUR (Jan 18): Rexit Bhd was one of the top gainers in early trade on Thursday, following the emergence of new major shareholders that triggered a mandatory general offer (MGO).

The stock jumped 28 sen or 30.34% to an intraday high of RM1.20, before paring its gains to close at RM1.01, up 9.78% or nine sen, translating into a market capitalisation of RM191.23 million.

This is despite a downgrade by TA Securities, which recommended a “sell” on the counter (from "hold" previously) citing that now is a good exit opportunity for investors.

According to a statement on Thursday, TA Securities stated that Datuk Seow Gim Shen, Metaco Asset Holdings Sdn Bhd, and Bemas Holdings Sdn Bhd have acquired a total of 92.3 million ordinary shares in Rexit, representing 53.3% of the total issued shares.

The shares were purchased from the three existing shareholders, namely Rexit Ventures Sdn Bhd, Global Hartabumi Sdn Bhd, and the group’s chief executive officer Datuk Chung Hon Cheong.

This transaction involved a total cash consideration of RM78.4 million, or 85 sen per share, it said.

“As a result, it triggers an MGO to acquire all the remaining shares at a cash consideration of 85 sen per share.

“The offer is not conditional upon any minimum level of acceptance of the offer shares. Meanwhile, the joint offerors intend to maintain the listing status of Rexit,” it added.

For valuation, the research house maintained its target price (TP) at 93 sen based on a TP-to-earnings ratio (PE) of 14 times the 2024 forecast earnings per share.

Despite the offer price of 85 sen per share being at a discount to its TP, TA Securities believes that it will be an opportunity for investors to exit, especially with potential concerns about Rexit's long-term direction following the exit of its founder and largest shareholder.

Guidance and potential new business direction from the new owners are still pending, it said.