ATTA Global Group Bhd, formerly SMPC Corporation Bhd (SMPC). The Company is engaged in the manufacturing and trading of metal-related products :-
(a) Steel service (slitting, shearing, etc);
(b) Metal roofing;
(c) Metal recycling;
(d) Perforation; and
(e) Metal furniture.
Atta has done quite well in recent two quarters. The main reason was due to "Other income" (for example : RM8.7 mil in March 2017 quarter). Unfortunately, the company did not provide much details. I found that annoying.
A quick check of FY2016 annual report turned up the following details, which was also not very helpful.
Another very confusng thing about the group is its ICULS, which is currently trading at 42 sen. According to FY2016 annual report, total ICULS outstanding is 221 mil units (vs 77 mil ordinary shares). Since one ICULS is convertible into one ordinary shares (according to FY2016 annual report), does that mean that share cap will balloon to closed to 300 mil upon conversion ?
Luckily, the following table extracted from a blog article provides the answer. Apparently, the ICULS can be used as a Warrant. By tendering one ICULS and add 90 sen cash, you can get one new ordinary share. That fully explains why the ICULS is trading at 42 sen when mother share price is RM1.36 (42 sen + 90 sen = RM1.32).
Remarks
I will say that this company has very poor disclosure. They did not even attempt to explain what was "other income", and the way ICULS was described in annual report also very confusing.
I don't see why I should put money in a stock like this. After all, share price has risen by a lot.
http://klse.i3investor.com/blogs/light/126500.jsp
