PETALING JAYA: Vivocom International Holdings Bhd CEO Datuk Seri Chia Kok Teong (pix) reiterated that he remains upbeat over the group’s prospects and assures investors of its long term investment to allay concerns stemming from market rumours that have placed some selling pressure on the counter.
Chia pointed out the group has made several corporate announcements that should provide more confidence to the public as he charts the course forward with the board of directors and management team. These include a one-for-three bonus warrant issue, a RM3.79 billion sand contract as well as a 10% private placement exercise.
The sand exportation will commence by end-March pending the finalisation of the contract’s administrative issues.
“This sand contract is as real and genuine a business contract as it can be. Do not compare this to past deals which had failed to materialise,” said Chia in a statement, noting that the market for sand export is huge and it is expected to fuel the group’s growth in the next several years.
On the other hand, it elaborated that the 10% private placement is expected to raise up to RM100 million, which will be utilised as working capital for its new sand mining business. Chia related that he has received interest from potential private and institutional investors and has explained his three-year self-imposed moratorium against disposing of personal shares in the company and the six-month moratorium requirement.
“There is no point if they just subscribe to the shares at a 6-10% discount and dispose of the shares in the market immediately, no value added.”
He expects the personal moratorium will ensure the counter’s long-term price stability and sustainability.
The CEO acknowledged the legacy issues associated with Vivocom along the misconception that it is a pump-and-dump counter, but believes that its steady and stable progress should dispel such notions.
He pointed out the group’s transacted share volume indicated enormous interest, a reflection of market forces driving its liquidity and momentum.
Moving forward, Chia stated that he will work towards elevating the group to Bursa Malaysia’s Main Market and transform it into a dividend-paying company.
“There will be more news to be announced in the near future including mergers & acquisition market moving moves and more sand contract deals, all values enhancing corporate deals.”
