Short selling of E&O suspended after breaching price limit
KUALA LUMPUR: The short selling of property company Eastern & Oriental was suspended in late Tuesday morning session after its share price dropped more than 15 sen or 15%.
Earlier today, it was down 20 sen to 89 sen in active trade. The short-selling activities will only resume on Wednesday.
It aims to raise as much as RM550.3mil via a private placement and renounceable rights issue to fund its property development projects.
The proposed private placement will involve the issuance of up to 10% of E&O’s issued share capital of 1.31 billion shares.
The renounceable rights issue will include free detachable warrants on an issue price and basis to be determined later.
Affin Hwang Capital Research said it believes the overhang from the equity issuance will weaken sentiment on the stock in the short to medium term.
“But the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019. Maintain Buy,” it said.
E&O had asked investors for RM550.3mil to fund its property development projects.