KUALA LUMPUR (Oct 3): Bursa Malaysia has rejected KNM Group Bhd’s (KL:KNM) plan to exit its Practice Note 17 status, saying the company was not able to prove it can grow and sustain its business, and that its plan doesn’t fully fix the issues that caused KNM’s financial problems.
In a filing with Bursa Malaysia, the group said following the decision, trading of KNM shares will be suspended on Oct 13. The stock may be delisted by Nov 5, unless KNM appeals the decision.
In detailing the reasons behind its decision, Bursa Malaysia said KNM’s proposal to sell its German unit, Deutsche KNM GmbH (DKNM), would leave KNM mainly with operations in Malaysia that have been losing money since 2024.
In 2024, KNM’s Malaysian operations made RM6.44 million, and RM1.38 million in the first half of 2025 — paltry sums in comparison to the company’s total capital of RM275.97 million. For 2025, revenue is expected to be around RM4.21 million, based on current orders, which is only about 1.5% of the restructured share capital — still very low for a company of this size.
In September, KNM obtained a temporary court order to pause all legal actions such as lawsuits and debt collections, halting creditors from taking control of KNM’s assets without permission and protecting the company’s business in Malaysia and abroad until its appeal is heard in May next year.
KNM fell into PN17 status in October 2022 after auditors raised concerns about its ability to keep operating.
While KNM struggled financially, it faced a takeover attempt. German billionaire Andreas Heeschen, who owned almost 8% of the company, tried to remove the board in 2023, before selling his shares mid-2024.
KHM’s biggest shareholder is currently Datuk Tunku Yaacob Khyra — a member of the Negeri Sembilan royalty — who owns about 19.375% through MAA Group Bhd (KL:MAA).
KNM’s share price closed 20% higher at three sen on Friday, valuing the company at RM121.3 million. Year to date, the stock has fallen 53.85%.