SERBA Dinamik Holdings Bhd is putting to test the wisdom of renowned Chinese philosopher Lao Tzu – the journey of a thousand miles begins with one step – by battling the odds to achieve solid revival in the days ahead.
As a starter, the global integrated oil & gas (O&G) outfit did not only beat the Monday blues but outsmarted many pessimists with strong buying interest to close 10 sen or 25.97% higher at 48.5 sen with an astounding 1.49 billion shares yesterday (July 5) – the second highest in its corporate history after an all-time high 1.74 billion shares on July 1.
Profit taking activity was well absorbed judging from yesterday’s trading range of between 39.5 sen and 51.5 sen while its market capitalisation improved to RM1.81 bil.
Meeting Bursa Malaysia’s deadline last Friday (July 2) by cementing its engagement with Ernst & Young Consulting Sdn Bhd (EY) as its special independent reviewer must have added some firepower alongside optimism of the company being able to appoint new independent directors “over the next few days.”
To sum up today’s performance, it is surely a praiseworthy baby step for Serba Dinamik to try to redeem its last traded price of RM1.61 which gave the company a valuation of RM6 bil prior to “all hell broke loose” on May 31 when its share price just headed south while relegating the counter to a penny stock.
On a lighter vein, yesterday was one of the rare occasions in more than a month when staunch Serba Dinamik supporters – Mabel ‘the cat lady’ and Steady Punpipi – had the last laugh on the popular i3Investor platform as they silenced the ‘haters’.
In all frankness, Serba Dinamik still has a tall mountain to climb given the flagging of accounting issues pertaining to its FY2020 statutory audit by the company’s former external auditor KPMG PLT has eroded the confidence of numerous investors from retailers to institutional investors.
Interestingly, despite having to grapple with margin call issue, founder, group managing director/CEO and controlling stakeholder Datuk Dr Mohd Abdul Karim Abdullah rendered “moral support by not wanting to miss out in the buying spree”.
In fact, he lived up to his words that he intends to buy back the shares he was forced to sell earlier due to margin calls.
“Touched by today’s buying support – and even being aware that the company he co-founded in 1993 is not truly out of the woods yet – Abdul Karim felt obliged to chip in his share of buying,” a source close to Serba Dinamik’s top management told FocusM.
“He is now keeping a close eye on the next vital move which is to expedite the appointment of new independent directors to restore the company’s board function with highest integrity.”
Nevertheless, yesterday’s (July 5) Bursa Malaysia filing showed that Abdul Karim parted with a further 32.18 million shares in two tranches (on June 30 and July 1) as well as eight million warrants (on July 1) due to forced selling which brought down his stake in Serba Dinamik to 20.73% from 27.07% prior to the sell-down of the counter. – July 6, 2021
