i itchy fingers go queue for ipco.
moi 1st queue after 1.5 yrs boh action.
dunno simi sai investment holding company.
A MAVERICK Malaysian politician has got in on the act on the hottest stock on the market these days.
Former law minister Mohd Zaid Ibrahim has agreed to subscribe for 350 million new shares of Ipco International at 1.98 cents apiece.
The private share placement, which works out to $6.9 million, will give Mr Zaid a 7 per cent stake in Ipco's enlarged capital.
In a statement yesterday, Ipco said it is selling the shares to Mr Zaid to raise funds for working capital purposes and short-term investments.
The issue price represents a 10 per cent discount to the stock's weighted average price of 2.2 cents yesterday.
The statement said Mr Zaid was introduced to the company by its chief executive, Ms Quah Su Ling.
Ipco, which has a diversified portfolio of investments, has been on the radar of stock punters in recent weeks.
Since the start of the year, the stock has generated a daily average volume of 359 million shares. Amid frenzied trading on Jan 11, turnover crossed a billion shares.
Yesterday, Ipco was the most active counter on volume of 508.9 million shares.
Despite the intense interest from traders and investors, dealers said the stock had struggled to break out of the 2.2 cent to 2.4 cent price range.
They attributed this to the massive flood of new shares that were created as a result of the conversion of $60 million convertible notes into ordinary shares by two funds.
The conversion enlarged Ipco's issued capital by nearly three billion shares.
The entry of Mr Zaid will further balloon the issued capital from 4.66 billion shares to 5.01 billion shares.
Ipco said Mr Zaid "is well connected in Malaysia and in the region and the company can leverage on his extensive connections... and knowledge in the oil and gas industry in order to grow its own oil and gas business".
A lawyer by training, Mr Zaid is also the founder of one of Malaysia's largest law firms.
However, it is unclear if his political ties will be a boon or hindrance to business.
Mr Zaid, who served as the de facto law minister in the Cabinet of former prime minister Abdullah Badawi, was sacked from the ruling Umno party in 2008 for attending opposition party events and assemblies.
He joined the opposition Parti Keadilan Rakyat soon after but left after just one year following a falling out with the party leadership.
He then set up a new party but his leadership proved shortlived amid bitter infighting.
