IOI moves to boost market visibility, address liquidity concerns: CEO
PUTRAJAYA: IOI Corp Bhd is stepping up efforts to enhance market visibility and investor engagement as it seeks to address concerns over its trading liquidity.
Group managing director and chief executive officer Datuk Lee Yeow Chor said the plantation group has taken several measures to boost market awareness of its operations and sustainability initiatives.
IOI Corp acknowledged market concerns after analysts suggested the company may risk exclusion from the FTSE Bursa Malaysia KLCI for failing the liquidity test several times this year.
"There were some questions raised about that. The company has been conducting regular analyst briefings and strengthening its presence on social media to enhance communication with investors," Lee said at a press conference following IOI's 56th annual general meeting here today.
Lee added that IOI Corp had recently seen an improvement in trading activity.
"We noticed that the share transaction volume has gone up in recent weeks since that report. That is what I can say," he said.
IOI Corp's shares have recorded relatively lower trading activity in recent months, prompting speculation that it could lose its position in the FBM KLCI, which comprises the 30 largest companies on Bursa by market capitalisation and liquidity.
The concern arose after research houses noted that IOI Corp's stock had fallen short of the index's liquidity requirement, which measures the median daily trading volume against the number of shares in issue.
Under the rule, a company must record a minimum monthly median daily trading volume of at least 0.04 per cent of its issued shares in at least eight of the past 12 months.
Despite the liquidity issue, analysts said IOI Corp's market capitalisation remains comfortably within the top 30 on Bursa Malaysia.
However, its trading performance will be closely monitored in the coming months to determine whether it can meet the index's liquidity threshold and retain its position in the benchmark index.