Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-W)] (Bursa Malaysia Securities) has publicly reprimanded Hua Yang Berhad (HUAYANG) for breach of paragraph 12.04 of the Bursa Malaysia Securities Main Market Listing Requirements (MAIN LR).
Pursuant to paragraph 12.04 of the MAIN LR, a listed corporation must ensure that any purchase of its own shares is effected only on the market of the Exchange.
HUAYANG had bought back 4,480,540 units of its own shares from a shareholder of the company on 22 April 2026 via Direct Business Transaction (DBT) instead of on the market of the Exchange, in contravention of paragraph 12.04 of the MAIN LR.
The finding of breach and imposition of the public reprimand on HUAYANG was made pursuant to paragraph 16.19(1) of the MAIN LR upon completion of due process and after taking into consideration all facts and circumstances of the matter including the materiality of the breach.
While Bursa Malaysia Securities has not found any of HUAYANG’s directors to have caused or permitted the breach by the company, Bursa Malaysia Securities wishes to highlight and remind that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the MAIN LR. The Board of Directors of HUAYANG at the material time was as follows: -
- Tan Sri Dato’ Seri Dr. Ting Chew Peh
- Ho Wen Yan
- Y.A.M. Tengku Dato’ Rahimah Binti Al-Marhum Sultan Mahmud
- Choo Seng Choon
- Chew Hoe Soon
- Ho Wen Fan
Bursa Malaysia Securities views the breach seriously as the requirement under paragraph 12.04 of the MAIN LR is fundamental in ensuring that share buy-backs are undertaken in an open and transparent manner subject to the safeguards and parameters prescribed under Chapter 12 of the MAIN LR which are crucial in maintaining a fair and orderly market. The requirement also aims to prevent selective share buy-back or preferential treatment to specific shareholder(s).
BACKGROUND
HUAYANG had on 22 April 2026 bought back 4,480,540 units of its own shares at RM0.195 per share for a total consideration of RM876,515.98 via DBT.
Pursuant to paragraph 12.26(2) of the MAIN LR, a listed corporation may only purchase its odd lot shares (which refers to securities quoted on the Official List that are less than 100 units) through DBT. However, the entire block of 4,480,540 HUAYANG shares was not an odd lot and therefore should have been effected on the market of the Exchange as mandated under paragraph 12.04 of the MAIN LR.
Listed corporations must ensure strict compliance with the obligations under Chapter 12 of the MAIN LR in undertaking share buy-backs.
