FOR sure, all eyes will be on listed issuer coded 5279 at the sound of Bursa Malaysia’s opening bell tomorrow (May 9) as the counter sees the daylight again after close to seven months in hibernation.

Even with odds seemingly stacked against Serba Dinamik Holdings Bhd, which last traded at 35 sen prior to its suspension on Oct 22 last year, some brave hearted punters/investors have expected the counter to give naysayers a good fight or at least to prove them wrong.

This is given the prospect of short-selling is limited by virtue of some brokerages imposing a cash-upfront policy while there is slight chance that the well-connected global integrated oil & gas (O&G) outfit may have a trick or two up its sleeve – notably a tie-up with some funds to absorb the selling pressure which will later pave wave to a price revival.

Moreover, two if its major shareholders, namely Datuk Mohd Abdul Karim Abdullah (group managing director/CEO; 21.22%) and Datuk Abdul Kadier Sahib (non-independent non-executive director; 16.33%) have on May 5 notified Bursa Malaysia of their intention to deal during closed period.

As trading activity on Serba Dinamik stock is anticipated to by ‘super-brisk’, StarBiz revealed yesterday (May 7) that at least one brokerage has imposed trading restrictions and imposed other curbs on Serba Dinamik.

Trading restriction

“In view of the uncertainty of Serba Dinamik’s financial well-being pending the outcome of the impact of the accounting irregularities, we anticipate volatility of the share price once trading is resumed on its shares/ warrants,” the unnamed brokerage said in a note to clients.

“As such, the management has decided that with effect from May 9, we will be imposing a trading restriction on the purchase of Serba Dinamik’s shares/warrants in all trading accounts (including margin and no trading is allowed for proprietary trading account), wherein 100% upfront cash payment/cleared fund (if payment is by cheque) before entering any purchase contract.”

In addition, it said Serba Dinamik’s shares/warrants shall also be classified as non-marginable counters at the same time.

In line with the trading restriction, the brokerage said Serba Dinamik’s shares/warrants would be suspended from purchase in the trading system.

“Should clients wish to purchase Serba Dinamik shares/warrants, please ensure they have sufficient cash in trust account/ cleared fund before requesting credit management staff to uplift the buy suspension,” added the brokerage.

On May 5, Serba Dinamik said it expects to formulate a plan to regularise its financial condition within the next eight months. “The company will make the necessary announcement on the regularisation plan in accordance with the requirements under Practice Note 17 (PN17),” it said in a Bursa Malaysia filing.

AG owes an explanation

As the moment of truth draws closer, DAP deputy chairman Gobind Singh Deo joined the chorus yesterday by calling on Attorney-General (AG) Tan Sri Idris Harun to explain why he consented to the resolution of the Serba Dinamik case by way of compound.

“The matter has generated a public debate and caused concern among corporate and capital market players all of whom expect regulatory bodies to play their roles effectively, to ensure the credibility of corporate governance and capital market development in Malaysia,” he pointed out in a statement.

“While the AG is empowered to institute, conduct or discontinue criminal proceedings, the question is whether there should be transparency in the exercise of that power. It also raises the question of accountability which can only be assessed if there is an explanation to begin with.

“As a public prosecutor, he must speak up, respond to and address the concerns raised. He must explain why he consented to the matter being resolved by way of compound and how that, on the facts of this case, inspires confidence.”

On Friday (May 6), the Malaysian Bar said it lamented the action of the AG which merely gave Serba Dinamik a slap on the wrist – an action which could set a dangerous precedent.

In December 2021, Serba Dinamik and four of its senior officers (including Abdul Karim) were charged in court for submitting a false statement to Bursa Malaysia which is an offence under section 369(a)(B) of the Capital Markets and Services Act 2007 (CMSA).

If convicted, a person faces an imprisonment term not exceeding 10 years and shall also be liable to a fine not exceeding RM3 mil. The imprisonment term demonstrates the severity of such a charge.

However, on April 13, the SC with the written consent of the public prosecutor and pursuant to its powers under Section 373(1) of CMSA, compounded Serba Dinamik and its accused officers for a sum of RM3 mil each (with a further RM1 mil on its vice president of accounts & finance for falsifying the accounting records of the company’s subsidiary). – May 8, 2022

https://focusmalaysia.my/final-countdown-can-serba-weather-the-may-9-storm-as-trading-resumes/