Ideal Sun City slapped with UMA query, shares drop 19.75%

PETALING JAYA: Ideal Sun City Holdings Bhd's share price dropped as much as 19.75% or 15.5 sen to 63 sen yesterday after being slapped with an unusual market activity (UMA) query by Bursa Malaysia over the recent spike in price of its shares.
In response to the regulator after market close, Ideal Sun City revealed that it is in discussions for an acquisition plan, but details are yet to be finalised, as negotiations are ongoing.
"Once details of the proposal have been finalised, an announcement will be made immediately," it said, but stressing that there is no certainty that the negotiations will result in the signing of any definitive agreement.
Trading of shares in Ideal Sun City, which was uplifted from the GN3 status in May, heightened in recent months despite the lack of any major corporate exercises. It has risen 126.67% since the the beginning of July.
However, its shares were badly hit yesterday, closing 10.5 sen or 13.38% lower at 68 sen, with some 19.23 million shares changing hands.
The warrants Ideal Sun City-WA also went down 9.5 sen or 13.77% to 59.5 sen.
Ideal Sun City was required to disclose any corporate developments, rumours or other possible explanation that might have caused the sharp rise.
The firm started to diversify its business from propagation of ornamental plants into the project management business for the commercial and residential property development industry in 2012.
Ideal Sun City exited from the classification of a GN3 company in May after it had regularised its financial condition.
For the first quarter ended March 31, 2014, it posted a net profit of RM1.77 million, a jump of 64.47% against RM1.08 million in the previous corresponding period, due to the increase in revenue of project management services.