KUALA LUMPUR (Feb 13): Shares of Revenue Group Bhd (KL:REVENUE) fell to a new record low on Thursday as investors baulked at the payment solutions firm’s proposed cash call to fund a venture into money lending.
Revenue Group fell as much as 16.67% to 10 sen, the lowest since its listing in 2018. The stock closed at 10.5 sen on Thursday, giving the company a market capitalisation of RM63.5 million. Trading volume totalled 14.48 million.
No institutional analysts now cover the stock.
Once a mid-cap darling of Bursa Malaysia, Revenue Group has been rocked by persistent quarterly losses amid management troubles, boardroom tussles, and shareholder lawsuits, which have wiped out nearly RM1 billion from its market capitalisation since its peak in 2021.
The company has been loss-making for the whole of the financial year ended June 2023 (FY2023), before switching its accounting year-end to Sept 30. The company reported net loss totalling RM12.73 million for FY2024.
On Wednesday, the company said it is planning to raise up to RM193.63 million via a rights issue with warrants. Under the maximum scenario, Revenue Group will allocate RM147.5 million as working capital for its money lending business.
The company has also earmarked RM15 million for the expansion of digital payment services, a further RM15 million for the development of digital solutions, and about RM15 million for working capital as well as for paying its creditors and operating and administrative expenses. The rest will go towards defraying the expenses for the proposals.