ML Global’s share price jumps threefold on resumption of trading

PETALING JAYA: Shares of ML Global Bhd, formerly known as VTI Vintage Bhd, surged 30 sen or 300% after trading in the counter resumed yesterday.
The upliftment of ML Global, which had been suspended for more than two years, saw its shares hit the 30-sen limit-up level just after the market opened. It was the third top gainer on the bourse with some 127,100 shares changing hands.
In a filing with the stock exchange, ML Global said the upliftment of suspension was to facilitate the implementation of its renounceable rights issue with warrants, which forms part of its regularisation plan.
Following that, trading in ML Global-OR commenced yesterday, with the rights share rising 29.5 sen or 5,900% to its day high of 30 sen.
The rights issue, on the basis of one rights share for every one existing ordinary share held together with one warrant for every two rights shares subscribed, was expected to raise RM18.25 million.
The loss-making firm was classified as a Practice Note 17 (PN17) company in February 2012 after its shareholders' equity fell to less than 25% of its paid-up share capital.
At ML Global's EGM last month, managing director Datuk Beh Hang Kong said the company, a roof-tile maker and builder, will focus on large-scale construction projects as a catalyst for it to return to profitability.
According to Beh, the firm has a tender book of at least RM100 million and was hopeful of bagging a few projects within the next few months.
For the six-month period ended June 30, 2014, ML Global's net loss widened to RM3.75 million from RM1.45 million in the previous corresponding period.
In August, property group LBS Bina Group Bhd emerged as a substantial shareholder of ML Global with a 21.92% stake via a placement exercise. Beh holds 29.91% of ML Global, and is the single largest shareholder.