ON paper at least, the entire disposal of the warrants holding of Serba Dinamik Holdings Bhd’s head honcho Datuk Mohd Abdul Karim Abdullah should not be detrimental to the price of the mother share as they represent separate entities.
But the setback is that such exercise evokes the question of trust and the company’s financial sustainability, most notably why must Abdul Karim who is also a co-founder, group managing director and CEO of the global integrated oil & gas service provider dumped his entire shareholding of warrants.
Abdul Karim who had in the past also trimmed his shareholding in the company’s mother his shares due to forced-selling has justified his decision to unload his entire holding of 55.9 million of the group’s warrants this week as “purely a business decision out of necessity” while reiterating his commitment “to turnaround Serba Dinamik from the doldrums”.
“My warrant disposal is to take advantage of it being traded at premium and shouldn’t be conceived as I harbor intention to exit the ship which I took so much sweat, tears and blood to build … I will make sure the ship continues to sail in the roughest of seas,” he told FocusM.
“Rest assured that I shall channel proceeds from the sale of the warrants to acquire the mother shares…Despite the turbulence, it’s still very much BAU (business as usual) at Serba as our current order book stands at RM18 bil.”
At yesterday’s (Oct 21) close, Serba Dinamik share price dipped one sen or 2.63% to 37 sen towards tail-end of trading with 80.84 million shares traded probably due to speculation of Abdul Karim’s massive warrant disposal.
In a Bursa Malaysia filing yesterday, Serba Dinamik announced that Abdul Karim has sold 21.58 million warrants on Oct 18, 34.2 million warrants on Oct 20 and another 123,600 warrants on Oct 21. Altogether, the warrants disposed represent about 6.34% of the group’s total warrants.
Meanwhile, Abdul Karim directly held 786.38 million shares or a 21.2% stake in Serba Dinamik as of Oct 4.
Serba Dinamik’s warrants were being traded at between 7.5 sen and eight sen on Oct 18, 20 and 21. On Thursday, the warrants closed unchanged at 7.5 sen.
At 9.45am, Serba Dinamik was down 2 sen or 5.41% to 35 sen with 85.13 million shares traded, while its warrants were down 0.5 sen or 6.67% to 7 sen with 12.78 million warrants traded. – Oct 22, 2021