Dataprep Holdings and Directors Reprimanded for Breach of Listing Requirements

Dataprep Holdings and Directors Reprimanded for Breach of Listing Requirements

Public Reprimand for Dataprep Holdings

Malaysia’s stock exchange, Bursa Malaysia Securities, has issued a public reprimand to the IT company Dataprep Holdings for violating listing requirements. The reprimand is in relation to the organization’s response to an unusual market activity (UMA) query regarding its Covid-19 screening contracts in March 2021. In its response, Dataprep claimed it was unaware of any corporate developments that could account for the unusual market activity.

Bursa Securities has asserted that Dataprep’s UMA response was not factual, lacked accuracy, and did not provide sufficient data for investors to make informed decisions. The organization has been found guilty of denying knowledge of negotiations for the proposed acquisition of certain companies to provide integrated solution technology for Covid-19 screening to the Ministry of Health. These proposed acquisitions were approved by the board in February 2021, contradicting the company’s claims.

Disclosures Made Several Weeks After the UMA Response

Approximately two weeks after responding to the UMA query, Dataprep announced a collaboration memorandum to undertake the proposed Covid-19 screening contracts and the proposed acquisitions. This announcement further contradicts the company’s previous response to the UMA query, highlighting the inconsistencies in Dataprep’s declarations and disclosures.

Fines Imposed on Dataprep’s Directors

Five directors of Dataprep have also been reprimanded publicly and fined RM100,000 each. These directors are Datuk Mohd Rizal Mohd Jaafar, Mohamad Sabir Mohamad Sabri, Datuk Abdul Aziz Ishak, Nor Adha Yahya, and Ong Kuan Wah. The imposition of penalties and the findings of breach followed due process and considered all facts and circumstances of the matter.

The Importance of Timely and Accurate Disclosure

Bursa Securities has emphasized that the requirement for timely and accurate disclosure of material information is fundamental to maintain corporate credibility, market integrity, and investor confidence. This incident serves as a stark reminder of the importance of transparency in corporate communications and the potential ramifications of misleading or incomplete disclosures.

Implications for Investor Confidence

The public reprimand and fines imposed on Dataprep and its directors may have significant implications for investor confidence in the company. The breach of listing requirements and the misleading UMA response could potentially harm the company’s reputation and credibility among investors and the wider market. Moving forward, Dataprep may need to take significant steps to restore trust and ensure adherence to listing requirements and disclosure norms.