MPHB share price under pressure due to listing delay of MPHB Capital
KUALA LUMPUR, Jan 23 – Multi-Purpose Holdings Bhd’s (MPHB) share price succumbed to pressure after news that MPHB Capital’s listing will be delayed until early February after the Securities Commission Malaysia (SC) approved the new listing with additional conditions.
The listing was earlier scheduled for end-January but the SC now wants the company to revalue its property assets.
Kenanga Research said the offer for sale of one-for-two MPHB Capital’s share to existing shareholders at RM1.00 per share was to reward them as the market price would be higher.
“We have valued MPHB Capital’s assets at RM1.73 per share. The huge discount is because the assets, mainly property assets, were re-valued in 2009-2011, which is not reflective of its market value,” it said in a research note.
Kenanga also said existing shareholders would be rewarded with a RM0.49 per share special dividend three months after the new listing.
“With that, the shareholders are practically getting the MPHB Capital’s share for free. Our target price for MPHB is RM4.31 per share which implies an upside potential of 30 per cent from here,” it said.
Kenanga said the recent weakness in share price offered a great opportunity to accumulate the stock.
“We are buying 4,000 MPHB shares into our thematic portfolio,” it said.
At at 3.27 pm, the stock stood at RM3.33 per share, up one sen from yesterday. – Bernama