PETALING JAYA: Shares of catering services provider, Brahim’s Holdings, fell sharply today after the company was categorised as a PN17 company when its shareholders fund fell below 25% of its paid-up capital.
At 12.30pm today, shares of Brahim, a company controlled by the brother of former prime minister Abdullah Ahmad Badawi, slipped 10.5 sen to 10 sen with 11.1 million shares traded.
The company, which mainly supplies food to airlines, is headed by Ibrahim Badawi.
Brahim informed Bursa Malaysia yesterday that it was now an affected listed issuer with risks of being delisted.
“Based on the unaudited interim financial results of BHB (Brahim’s) for the fourth quarter ended Dec 31, 2018, the shareholders’ equity of BHB on a consolidated basis of less than RM40 million represented 25% or less of its issued capital. Hence, BHB is now regarded as a PN17 company,” the company said in a statement.
Brahim’s said it has 12 months from now to submit a regularisation plan to the Securities Commission (SC) and implement it within a time frame stipulated by SC or Bursa Malaysia.
Brahim’s has suffered losses for five consecutive years, as it reported a widened net loss of RM103.14 million for the financial year ended Dec 31, 2018 (FY18), compared with a net loss of RM6.94 million in FY17.
The company, which was listed in 1994 at RM2, was on the radar of investors in 2013 and 2014 when its share price hit a high of RM2.42, but its stock price has been falling ever since.