PETALING JAYA: Cypark Resources Bhd’s shares were heavily traded this morning following the company’s announcement of Chung Chee Yang’s exit as a substantial shareholder.
At 11.05am, Cypark’s trading volume rose to a five-month high of 38.22 million, and more than double its 200-day average volume of 16.33 million. It was the fifth-most active stock on the ACE market.
Meanwhile, Cypark’s share price surged over 15% to a high of 93.5 sen before trimming its gains to 91 sen at noon break, up 10 sen or 12.35% compared to yesterday’s close.
The company had a market capitalisation of RM714.1 million.
Year to date, the stock has gone up by 76%.
On Friday, the renewable energy and solid waste management firm announced that Chung had disposed of 40 million shares, equivalent to 5.1% of the company’s equity.
He now holds 37.43 million shares, or 4.77%, of the company.
Chung became Cypark’s single largest shareholder in September last year when the company’s share price went below 50 sen on the back of a weak financial position and uncertain progress of its Ladang Tanah Merah waste-to-energy project in Negeri Sembilan.
However, he was then replaced as the company’s single largest shareholder by Jakel Capital Sdn Bhd, who acquired 176.65 million shares or 27.33% of the company in January this year.
Chung’s stake dropped to 10.1% following Jakel’s acquisition then.
In the meantime, the Social Security Organisation (Socso) has increased its stake to 6.74% after acquiring 2.9 million shares on the open market on Sept 13 and 1.5 million shares on Sept 14.
Socso first emerged as a substantial shareholder in Cypark in February this year.
Cypark was founded in 1999 as a waste management company. It has now branched out into renewable energy.