ICON: Designated Securities Status Uplifted [WARNING!]

Icon rose 18 sen to 42 sen as at 9:15 am. This is probably prompted by the seemingly positive news of the upliftment of designated securities status imposed on Icon by the exchange (here). Note: Icon went limit-up at 53.5 sen as at 9:31 am. 

Before you take the plunge, you should take note that 2.374 billion Rights issue shares costing only RM0.10 each will be listed on 20 February. For those who are in the know, they may even start to sell on 18 February as the delivery date for their sales will be on 20 February. That would tie up in with the announced date for the listing & trading of the new shares (which is normally the date the new shares would appear in the CDS account).

I am not advising you to join the selling on 18 February because the exchange or the company may delay the crediting of the new Rights issue shares into shareholders' CDS account; in which case the seller would then end up in an oversold position which would necessitate a Market Buy-in by the exchange. I'm however advising you to avoid the current play in Icon.

My question to BURSA MALAYSIA:

Why are you facilitating the play on the stock by uplifting the designated securities status ahead of the listing and trading of the Rights issue of 2.374 billion new shares? 

Note: The Rights issue shares and free warrants have been approved for listing and trading on 18 February, instead of 20 February. This announcement, which was made at 3:14 pm today, precipitated the collapse of the play. As at 4:12 pm. Icon was trading at 20 sen only. (here).