KUALA LUMPUR: Water Beaute World Bhd has ceased to be the biggest shareholder of Raya International Bhd, a water filter distributor whose shareholders recently approved its diversification into oil bunkering and oil-related products trading.
In a filing with Bursa Malaysia, Raya International said Water Beaute had disposed of 18.27 million shares -- about 12.7% of the company’s paid-up capital -- on June 10.
Based on the closing price of 23 sen per share on June 10, the shares sold were worth RM4.2mil.
Raya International’s share price had climbed 38% within the course of a week to hit 36 sen on May 30. Since then, the shares have dropped back to the level seen at the start of the year, closing at 22 sen on Tuesday.
On May 30 Bursa Securities queried the company on the surge in trading volume (17.657 million shares changed hands that day) but Raya International said its directors and major shareholders were not aware of the reason.
Raya International plans to issue up to 20.5 million shares (about 12.5% of its paid-up capital) to approved bumiputra investors, the proceeds from which will be used mainly for the expansion into providing bunkering services for marine fuel, petroleum and petroleum-based products.
In an announcement on the proposed diversification, Raya International (formerly Envair Holding Bhd) noted that it had stopped manufacturing water and air filter products since early 2014 as they were not competitive against cheaper and imported products, acting only as a distributor of water filter components since.
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