The MOL Global Inc is the very first Malaysian firm to be listed in the United States. On Monday, the company’s shares are said to fall down by more than 60 percent after the company reported a net profit loss equal to 61.5 percent and some accounting errors at its Vietnam unit.
The company is known to be majority owned by Johor, who is the sultan of Malaysia, and Vincent Tan, a well-known billionaire. MOL Global is now trading 80 percent lower than its original price listed at on the tenth of October 2014. Aside from a whopping share price fall, the company is also battling two kinds of action lawsuits from its investors who think they had been fooled by the company’s listing prospectus.
According to the MOL Global Inc., its Vietnam unit slightly overstated their direct costs and revenue. This error added to the worries of the investors regarding the departure of Allan Wong, who is the Chief Financial Officer of the company, and the delay to the announcement of the company’s result.
Ganesh Kumar Bangah, the Chief Executive of MOL, said that the Chief Financial Officer’s departure is a perfect storm that leaves the company to delay its earnings results.