PTRANS－－BEWARE AS TOO MANY SHARES HAS BEEN ISSUED.........

In April 2018, the Ipoh based public transport service provider terminated a conditional share subscription agreement with Australian banking group Macquarie Bank Ltd.

The deal was part of a corporate exercise to raise up to RM49.38 million – largely to repay borrowings and to settle an outstanding balance for two land acquisitions it made in 2017 – by issuing 182.87 million placement shares.

However Macquaries Bank only managed to subscribe for 10 million shares in three tranches between Feb and March 2018 before the share subscription deal was unilaterally called off by Ptrans in April 2018 (due to softened market causing the subscription price after discount to breach the RM0.25 floor price).

Market talk has it that in a move to rake in some quick profit, the bank disposed of the shares shortly after it received them. The sale had depressed PTrans’ share price.

PTrans was rumoured to have been caught by surprise by the Australian banking group’s decision, which resulted in an overhang in the stock.

PTrans will seek new investors to subscribe for the remaining shares.

Based on the amout of shares that Macquaries Bank has sold, doubts that the sale weighed on PTrans’ share price. But like it or not, Macquarie Bank’s move may have created uncertainties about the company’s share price, leading investors to wonder when the foreign bank would clear its position.

PLS NOTE the construction of Terminal Kampar is on track and the new bus terminal is scheduled to commence operations by end 2018.

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CAN ONLY BUY BELOW 22 OR 23 SEN...

BUY AT THE END OF THE YEAR....

TOO MANY SHARES HAS BEEN ISSUED

NEXT MID-YEAR(JUNE 2019)  ONLY CAN SEE PROFIT