Saturday 02 Nov 2024
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KUALA LUMPUR (Oct 11): Software-as-a-Service (SaaS) provider Rexit Bhd (KL:REXIT) has announced the resignation of its executive chairman, Datuk Seow Gim Shen, just six weeks after taking on the role.

Seow, 42, stepped down due to "personal commitments and the growth of his other new business ventures", Rexit's bourse filing on Friday showed. Seow still remains the company’s largest shareholder with a 23.33% stake.

Seow was appointed executive chairman just last month, succeeding Datuk Ng Kam Chiu, who retired on the same day. Prior to that, he had served as Rexit's chief executive officer from early March, following the resignation of Datuk Chung Hon Cheong.

Rexit's other substantial shareholders include Metaco Asset Holdings Sdn Bhd, which holds an 18% stake, Bemas Holdings Sdn Bhd with 11.94%, and Kuah Hun Liang, who owns 10.65%.

Notably, in January this year, Seow, along with Metaco Asset Holdings and Bemas Holdings, launched a takeover offer to acquire the remaining shares in Rexit at 85 sen per share.

The offer came after the trio collectively acquired 92.27 million shares, representing a 53.27% stake in the company, for a total consideration of RM78.43 million.

Rexit has seen a decline in profitability over the past three quarters.

For its fourth quarter ended June 30, 2024 (4QFY2024), its net profit fell by 19.7% to RM2.95 million from RM3.67 million a year earlier, primarily due to lower revenue from software customisation services.

Quarterly revenue otherwise inched up 2.44% to RM7.40 million from RM7.22 million in the same period last year.

Shares in Rexit closed unchanged at 82 sen on Friday, giving the company a market capitalisation of RM154.29 million. Year to date, the stock has declined by 4.65%.

Edited ByEsther Lee
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