RM10 billion in gains evaporated in less than two weeks
In the span of a single morning, Tanco Holdings completed a journey that took years to build and days to destroy — its shares frozen at 20 sen after a fourth consecutive limit-down, erasing nearly RM10 billion in market value that had accumulated through a 600 percent rally begun in 2024. The collapse, the steepest in the company's 39-year listed history, raises the oldest question in markets: what did those closest to the fire know, and when did they know it? As regulators circle and a data centre deal surfaces mid-freefall, the silence from the company's managing director speaks louder than any announcement.
- Tanco's stock hit its 20 sen floor within 30 minutes of Thursday's open, triggering automatic short-selling suspension and leaving over 205 million shares frozen in place — a fourth consecutive limit-down with no precedent in the company's history.
- Nearly RM10 billion in market capitalisation evaporated in under two weeks, reversing a 600 percent rally and compressing the company's value from a RM10 billion peak to roughly RM1.22 billion.
- Managing director Andrew Tan stayed silent publicly but was conspicuously active in the market — buying millions of shares through private transactions while simultaneously selling in the open market at sharply lower prices.
- A memorandum of understanding with China Mobile for a 50-megawatt data centre was disclosed on June 9, mid-collapse, raising questions about whether material developments had been withheld from the market during the rally.
- Bursa Malaysia has now questioned Tanco twice this year over unusual price movements, and with short selling set to resume Friday, the pressure on regulators to demand a fuller accounting is mounting.
Tanco Holdings hit the floor on Thursday morning and stayed there. Within the first half hour of trading, the property developer's stock had fallen 60 percent — the maximum single-day drop permitted for shares priced below one ringgit. More than 205 million shares changed hands before the stock froze at 20 sen, unable to fall further. It was the fourth consecutive day the company had hit this limit, a streak without precedent in its 39-year listed history.
The collapse erased nearly RM10 billion in market value. Just eight days earlier, Tanco's shares had peaked at a valuation exceeding RM10 billion, the culmination of a 600 percent rally that had begun in 2024. With the stock now at 20 sen, market capitalisation had shrunk to roughly RM1.22 billion — a decade's worth of gains incinerated in less than two weeks.
Managing director Datuk Seri Andrew Tan Jun Suan offered no public explanation, declining to respond to repeated inquiries. Yet he had been anything but idle. On June 10 alone, he purchased 15.27 million shares at RM1.05 through a direct transaction, then sold two million shares in the open market at 50.7 sen, and earlier that day had sold 24.63 million shares at RM1.555 through another private deal. His younger brother Edwin had also been buying near the lows.
The corporate announcements surrounding the collapse deepened the mystery. On June 9, as the stock was in freefall, Tanco disclosed a memorandum of understanding with China Mobile International to explore a 50-megawatt data centre in Port Dickson. When Bursa Malaysia had asked for clarification the day before, the company replied only that certain matters were "at the stage of being discussed or negotiated" — nothing ready for disclosure. It was the second time this year the exchange had pressed Tanco over unexplained price movements; in April, the company had attributed a similar surge to news reports about a container port project and denied any undisclosed developments.
The 60 percent drop also triggered an automatic suspension of intraday short selling, a circuit breaker that activates when a stock falls more than 15 percent or 15 sen from the previous close. Short selling was set to resume Friday morning. Whether regulators would use the interval to demand a fuller accounting of what had been driving Tanco's extraordinary — and now catastrophic — year in the market remained the question hanging over the exchange.
Tanco Holdings hit the floor on Thursday morning and stayed there. Within the first half hour of trading, the property developer's stock had fallen 60 percent—the maximum allowed drop in a single day for shares priced below one ringgit. By the time the dust settled, more than 205 million shares had traded hands, and the stock sat motionless at 20 sen, unable to fall further. It was the fourth consecutive day the company had hit this limit, a streak without precedent in the 39 years since Tanco first listed.
The collapse erased nearly RM10 billion in market value. Just eight days earlier, on June 3, Tanco's shares had peaked at a valuation exceeding RM10 billion—the culmination of a stunning 600 percent rally that had begun in 2024. Now, with the stock trading at 20 sen, the company's market capitalization had shrunk to roughly RM1.22 billion. The speed of the reversal was staggering: a decade's worth of gains incinerated in less than two weeks.
Managing director Datuk Seri Andrew Tan Jun Suan offered no explanation. The Edge reached out to him on Wednesday and again on Thursday, but received no response. Yet Tan himself had been active in the market during the selling frenzy. On June 10 alone, he purchased 15.27 million shares at RM1.05 through a direct transaction—a deal between known parties—and then sold two million shares in the open market at 50.7 sen. Earlier that same day, he had sold 24.63 million shares at RM1.555 via another direct transaction. His younger brother, Edwin Tan Kium Suan, had also been buying, acquiring 7.64 million shares at Tuesday's low of 78.5 sen.
The timing of corporate announcements added another layer of mystery. On June 9, as the stock was collapsing, Tanco disclosed a memorandum of understanding with China Mobile International Ltd to explore developing a 50-megawatt data centre facility in Port Dickson, Negeri Sembilan. The company had been vague with regulators about what was driving the unusual activity. When Bursa Malaysia asked for clarification on June 8, Tanco replied only that there were "endeavours at the stage of being discussed or negotiated" but that nothing was ready for public announcement.
This was not the first time the exchange had questioned the company. In April, after another unexplained price surge, Bursa Malaysia had pressed Tanco for details. The company attributed that spike to news reports about a proposed container port project in Port Dickson and denied any undisclosed developments. Yet here, just weeks later, was a data centre deal—announced as the stock was in free fall.
The collapse triggered an automatic suspension of intraday short selling, a circuit breaker that activates when a stock drops more than 15 percent or 15 sen from the previous close. Short selling would be allowed to resume on Friday at 8:30 a.m., but by then the damage was done. Investors who had ridden the rally from 2024 through early June had watched their gains vanish. The question now was whether regulators would demand answers about what had really been happening behind the scenes.
Notable Quotes
Endeavours at the stage of being discussed or negotiated, though the matter was not ready to be announced— Tanco Holdings, in response to Bursa Malaysia inquiry on June 8
The Hearth Conversation Another angle on the story
A stock doesn't fall 60 percent in a morning without something breaking. What actually happened here?
That's the thing—nobody knows. The company won't say. The managing director went silent. All we have are the facts: a massive rally, then a cliff, and a data centre announcement that came as the stock was collapsing.
But the managing director was buying and selling shares during all this. Isn't that suspicious?
It looks that way. He was buying at higher prices and selling at lower ones, which is odd. His brother was buying too. Whether it's suspicious or just poor timing, I can't say. But the pattern is there.
The company told regulators nothing was ready to announce, then announced something days later. How does that work?
They said the data centre deal was still being discussed. Maybe it was. But the timing—announcing it as the stock was in freefall—raises questions about what they knew and when they knew it.
So what happens now?
Regulators will probably want answers. The company has been asked twice this year to explain unusual activity. This is the third time, and it's the biggest move yet. Someone will have to account for it.