Axteria shares soar 43pct on five-year high trading volume

Shares of Axteria Group Bhd skyrocketed over 40 percent this morning, with trading volume reaching its highest level in five years within the first hour of the market opening. At 9:54 AM, the stock rose by five sen or 35.71 percent, with 32.12 million shares exchanged. The action made Axteria the second most actively traded company on Bursa Malaysia.

The Johor-based property developer opened at 15.5 sen, a 10.71 percent increase from its previous price, before climbing a further six sen or 42.86 percent to 20 sen. This price point had not been reached since 2023.

No fresh corporate announcements from Axteria provided insight into the sudden surge in buying interest. The company's latest update on October 22 focused on a proposed private placement, with Bursa Malaysia Securities Bhd approving the listing of up to 78.84 million new shares. This issuance, representing 10 percent of Axteria's issued shares excluding treasury shares, aims to raise approximately RM7.4 million based on an estimated issue price of 9.38 sen per share.

In addition to the private placement, Axteria is also actively pursuing the acquisition of an 80 percent stake in construction firm Niaga Sari Sdn Bhd for RM35 million in cash. This strategic move is intended to bolster the company's construction capabilities and support its property development business. Niaga Sari currently has an order book valued at RM567.4 million and has provided a profit guarantee of RM9.2 million over the next two years, as stated in Axteria's earlier announcement.

Originally known as Acoustech Bhd, Axteria has shifted its primary focus to property development and construction since its rebranding.