KUALA LUMPUR, Nov 24 — Digi.com Bhd’s share tumbled to its lowest price in over a year this morning, after it was removed from Securities Commission’s list of Shariah-compliant securities.
It recorded a low of RM4.48, a fall of 41 per cent from its closing price yesterday.
Nikkei Asian Review reported Hong Leong Investment Bank saying that Digi’com’s conventional debt rose to RM2.3 billion to pay for spectrum free.
This resulted in its conventional debt over asset ratio rising to 41 per cent, exceeding the Shariah-compliant financial ratio threshold of 33 per cent.
“Today’s sell-off is an opportunity for non-Shariah compliant funds and investors to accumulate Digii shares,” an analyst was quoted by the financial news outlet.
StarBiz quoted UOB Kay Hian Malaysia Research saying the November 2017 Shariah assessment is based on the latest annual audited accounts for respective companies.
“It is understood that Digi’s conventional debt-to-total asset spiked up towards end-2016 due to the drawdown of existing loan facility to pay for the 900Mhz and 1800Mhz spectrum fees which amounted to RM600mil.
“Since then, Digi’s conventional debt-to-total asset has been regulated back to 30 per cent with the establishment of a RM5 billion Islamic bond facility (sukuk) in the second quarter of 2017,” it said.
