Theta Edge shares surge after RM673.8m contract win

KUALA LUMPUR (July 10): Shares in Theta Edge Bhd (KL:THETA) surged on Wednesday in active trade, snapping a two-day decline, after the IT services company announced a RM673.8 million contract win.

Theta Edge rose as much as 10% or 18 sen to RM1.92. The stock ended the day at RM1.79, still up by five sen or 2.87%, valuing the company backed by Lembaga Tabung Haji at RM211.16 million. Trading volume totalled 8.5 million shares.

On Tuesday, Theta Edge reported to Bursa Malaysia that its wholly owned subsidiary Theta Telecoms Sdn Bhd had on July 2 received an offer letter from the Ampang Jaya Municipal Council for the development, provision and maintenance of Internet of Things (IoT) for its smart business initiative in Ampang Jaya. 

The contract with a concession period of 240 months will commence from July 15, 2024 until July 14, 2044, according to the group filing. 

Following the contract won, Theta Edge also announced the appointment of former secretary general in the Ministry of Investment, Trade and Industry Tan Sri Abd Rahman Mamat as its new chairman of the board, taking over from Tengku Datuk Seri Hasmuddin Tengku Othman.

Follow-suit Abd Rahman is Datuk Dyg Sadiah Abd Bohan who was appointed as Theta Edge’s non-independent non-executive director of the board. 

Year-to-date, Theta Edge’s share price has gained 159.42% or RM1.10, enjoying a good run since February, even without announcing any new contract win ahead of this latest job win. 

The company has no institutional coverage. 

Theta Edge is also understood to have been shortlisted for the National Immigration Information System or NIISe project, alongside Dagang Nexchange Bhd (DNeX) (KL:DNEX), The Edge Malaysia weekly reported on May 27-June 2, 2024 edition. 

The NIISe project involves the integration of data from 13 modules of the existing border control system, including the foreign workers segment, advanced passenger screening system, facial and fingerprint biometrics, professional visit passes, passports and travel documents. 

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