“PERHAPS it’s best that Serba remains suspended for a while longer, otherwise today’s development will surely open a wide floodgate capable of wiping away whatever value remaining of the company,” so commented a Serba Dinamik Holdings Bhd retail investor who has forked out RM50,000 to amass stock of the global integrated oil & gas (O&G) service provider during its recent downward spiral.
“I thought it was a fire-sale and that I was smart enough to set aside my hard-earned savings for a darling stock … but with today’s development, I reckon, there is no way I would ever come close to recouping my seed money”.
Like many other Serba Dinamik investors, the retiree retail investor who has withdrawn the “seed money” from his Employees Provident Fund (EPF) to invest in the company has come to terms with the prospect of “never recouping a single sen” in his investment.
This comes as the Securities Commission (SC) has initiated several charges against the company and its executives for submitting a false statement to Bursa Malaysia Securities Bhd under Section 369(a)(B) of the Capital Markets and Services Act 2007.
To rub salt on the wound, the market regulator is also on the lookout for the company’s group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah.
SC said Serba Dinamik had on Feb 26, 2021 with intent to deceive, furnished a false statement to Bursa Malaysia Securities Bhd in relation to the affairs of Serba Dinamik, and the false statement is contained in “Serba Dinamik Holdings Bhd’s quarterly report on the consolidated results for the quarter and year ended Dec 31, 2020”.
In this regard, the company has thereby committed an offence under section 369(a)(B) of the Capital Markets and Services Act 2007 (Act 671) which is punishable under section 369 of the same Act.
As for Karim, he had committed an offence under section 369(a)(B) of the Capital Markets and Services Act 2007 (Act 671) when he, with intent to deceive, furnished a false statement to Bursa Malaysia in relation to the affairs of Serba Dinamik, and the false statement is contained in “Serba Dinamik Holdings Bhd’s quarterly report on the consolidated results for the quarter and year ended Dec 31, 2020.
The market regulator added that Karim who was at that time a director of Serba Dinamik was deemed to have committed an offence under section 369(a)(B) read together with section 367(1) of the Capital Markets and Services Act 2007 (Act 671) which is punishable under section 369 of the same Act.
In addition to Karim, SC also charged group chief financial officer Azhan Azmi, company secretary Muhammad Hafiz Othman and non-independent executive director Datuk Syed Nazim Syed Faisal.
Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil. – Dec 28, 2021
