MMAG Holdings Berhad has proposed a capital reduction of up to RM130 million to eliminate its accumulated losses and strengthen its financial position.
The corresponding credit arising from the capital reduction will be used to offset MMAG’s accumulated losses, with the actual reduction capped at the amount of accumulated losses determined at a later date.
As at Sept 11, 2026, MMAG had an issued share capital of RM298.3 million comprising approximately 2.32 billion ordinary shares.
The company also had 101.19 million outstanding warrants exercisable at 15 sen each, which are scheduled to expire on Jan 15, 2029.
Based on MMAG’s unaudited financial position as at June 30, 2026, the company recorded accumulated losses of RM128.6 million, while the group registered accumulated losses of RM168.6 million.
For illustrative purposes, assuming the full RM130 million reduction and estimated expenses of RM170,000, the exercise would eliminate the company’s accumulated losses and leave it with retained earnings of approximately RM1.23 million.
At the group level, accumulated losses would decline to approximately RM38.73 million from RM168.56 million.
MMAG said the exercise is intended to rationalise its financial position by eliminating historical accumulated losses and better reflecting the value of its underlying assets.
The company added that the proposed capital reduction would enhance the group’s financial profile among bankers, customers, suppliers, investors and other stakeholders.
M&A Securities Sdn Bhd is acting on behalf of MMAG’s board of directors for the proposed exercise.
