MMAG proposes RM130mil capital-reduction plan

By the Editorial Team · Wednesday, September 23, 2026

MMAG Holdings Bhd has proposed a capital reduction of up to RM130 million to eliminate its accumulated losses by cancelling part of its issued share capital. This move aims to strengthen the company's financial position and is pending shareholder and regulatory approval, with completion expected in the first quarter of the 2027 financial year.

MMAG Holdings Bhd has proposed a capital reduction plan of up to RM130 million aimed at eliminating its accumulated losses and improving its financial standing. The integrated supply chain management company announced the initiative in a filing with Bursa Malaysia on September 23, 2026.

The proposed reduction involves cancelling up to RM130 million of MMAG's issued share capital, as permitted under Section 117 of the Companies Act 2016. The credit generated from this cancellation will be applied to offset the company’s accumulated losses. As of September 11, 2026, MMAG’s issued share capital stood at RM298.3 million, consisting of 2.32 billion ordinary shares. Additionally, the company has 101.19 million outstanding warrants with an exercise price of 15 sen each.

MMAG stated that the capital reduction would help rationalize its financial position by removing accumulated losses, thereby more accurately reflecting the value of the company’s underlying assets. This move is expected to enhance the group's financial profile in the eyes of bankers, customers, suppliers, investors, and other stakeholders.

The company emphasized that the exercise would not affect its share price, the number of shares in issue, or shareholders' individual holdings. There will be no cash payouts or change in net assets aside from an estimated RM170,000 in related expenses. According to unaudited accounts as of June 30, 2026, MMAG’s accumulated losses totalled RM128.6 million at the company level and RM168.6 million at the group level. After applying the maximum reduction and accounting for expenses, the company is projected to report retained earnings of RM1.23 million, although the group would continue to carry accumulated losses of RM38.73 million.

The capital reduction is not expected to have a material impact on the group’s earnings or earnings per share for the financial year ending March 31, 2027. It also will not affect the shareholdings of substantial shareholders.

This proposal remains subject to approval by MMAG’s shareholders at an extraordinary general meeting, as well as any other necessary regulatory consents. The company anticipates the transaction to be finalised in the first quarter of its 2027 financial year, barring any unforeseen developments. M&A Securities Sdn Bhd is acting as the principal adviser for the proposed capital reduction.

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