|Hot Stock IRCB tumbles to lowest in 40-year listing history|
|Business & Markets 2012|
|Written by Chong Jin Hun of theedgemalaysia.com|
|Monday, 31 December 2012 14:16|
KUALA LUMPUR (Dec 31 ) – Integrated Rubber Corp Bhd (IRCB) fell to its lowest since its listing some 40 years earlier after regulators placed the rubber glove manufacturer under the Practice Note 17 (PN17) category due to the company’s failure to service its debt obligations.
A dealer said investors could be accumulating IRCB shares after the stock was battered down on updates that the company has been placed under the PN17 category.
"Investors could be buying IRCB shares on speculation," the dealer told theedgemalaysia.com over telephone.
Meanwhile, IRCB warrants, the fourth most-actively traded entity, added as much as 0.5 sen or 25% to close at 2.5 sen with some 14 million units done at lunch break.
IRCB told the exchange last week that Malayan Banking Bhd (Maybank) had a day earlier recalled loan facilities given to the company ‘s wholly-owned subsdiary Comfort Rubber Gloves Industries Sdn Bhd (CRG) with immediate effect.
IRCB said it is "managing its existing business with limited financing resources" and that the company is in talks with its two other lenders AmBank (M) Bhd and CIMB Bank for a "stand-still arrangement".
The loss-making rubber glove manufacturer said it is also talking with "strategic partners" which may inject capital into the company. IRCB had made a cumulative net loss of RM18 million in the nine months ended October 31 against a net loss of RM17.93 million a year earlier.
As at October 31, IRCB net debt stood at RM24.83 million based on its cash of RM45.08 million and debt obligations of RM69.91 million, its balance sheet shows. For now, IRCB which does not have a formal regularisation plan to rejuvenate its financials yet, said it intends to come out with one to repair its balance sheet.
The company said it will keep the investment fraternity updated on the company’s progress.
According to IRCB's website, the company formerly known as Berjuntai Tin Dredgging Berhad (BTD) was established March 31,1937, as a public company under the name Berjuntai Tin Dredgging Ltd before changing its name to BTD on April 15, 1966.
This followed the group's diversification into natural and synthetic rubber glove manufacturing since 2003 via the acquisition of the entire stake in CRG from Chip Lam Seng Bhd then.