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Two other counters linked to the prominent investor – industrial mould manufacturer Rapid Synergy Bhd and agricultural manufacturer Imaspro Corp Bhd dropped as much as 9% and 3%, respectively.
YNH fell as much as 12.5 sen or 20.7% to 48 sen earlier today but managed to pare its losses by the mid-day break, settling 10 sen or 16.5% lower at 50.5 sen, valuing it at RM267 million. It was the fifth most active counter on Bursa Malaysia with 82.8 million shares traded.
At the break, Rapid Synergy was lower by seven sen or 7.8% at 83 sen, valuing the group at RM88.7 million while Imaspro was down three sen or 2.7% to RM1.08, giving it a market capitalisation of RM86.4 million.
Kuan Chon, who is YNH’s chairman and executive director, has a 32.6% stake in the developer. He also holds a 22.8% equity interest in Rapid Synergy and 15.7% in Imaspro.
Small-cap selldown
Interestingly, these three counters were at the centre of the small-cap selldown on Bursa Malaysia in early January.
Rapid Synergy was the biggest loser of the three, losing an eye-watering 97% year-to-date (YTD) while YNH has plummeted 87.5% so far this year. In contrast, Imaspro’s shares have dropped only 69.4% YTD.
In a bourse filing yesterday, the SC alleged that Kuan Chon had engaged in manipulative activities in the trading of Shangri-La shares, breaching provisions under the Capital Markets and Services Act 2007.
The regulator alleged that Kuan Chon had traded shares of the hotel group between March 1, 2018 and July 24, 2018 in a manner that caused a surge in its share price and traded volume.
The SC is seeking orders to compel Kuan Chon to pay disgorgement amounting to RM26.57 million, three times the gain from the alleged manipulation.
The regulator is also seeking a RM1 million civil penalty and for him to be barred from managing any public company for five years, and from trading on the exchange for the same period.
Kuan Chon, 61, is a medical doctor turned high-flying investor. He joined YNH, his family’s Perak-based property business, in 1995 after serving as a medical officer in various government hospitals. YNH was founded in Sitiawan by his father, the late Neh Huat, in the 1970s and was listed on Bursa Malaysia in 2003. His elder brother Kuan Huat, 65, is YNH’s managing director and a substantial shareholder.
Kuan Chon, who keeps a low profile, is listed in 39th position in Forbes’s Malaysia’s 50 Richest list with a net worth of US$430 million (RM2 billion) as of May 31, 2023.
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