This article first appeared in The Edge Malaysia Weekly on February 2, 2026 - February 8, 2026

In order to comply with the 12.5% bumiputera equity condition as part of Bursa Malaysia’s listing requirements, KJTS Group Bhd (KL:KJTS) needed to issue 102 million shares to investors approved by the Ministry of Investment, Trade and Industry (Miti).

However, the take-up of the company’s special issue of shares was very low. After several attempts, approved bumiputera investors had subscribed for only 248,000 of the shares at RM1.39 apiece. The exercise was completed on Jan 13.

Although the take-up rate was low, Miti informed the company, which provides integrated building support services, that it was deemed to have complied with the bumiputera equity condition as the ministry had exhausted all efforts to assist it in fulfilling the shareholding requirement.

But just 10 days after KJTS issued the new shares at RM1.39 each, the stock price fell to 81.5 sen.

According to analysts’ reports, the company’s shares came under selling pressure because it faced delays in the completion of its acquisition of Malakoff Utilities Sdn Bhd (MUSB) from Malakoff Corp Bhd (KL:MALAKOF) for RM65.5 million.

The delay was due to conditions precedent (CPs) that had not been met.

According to a company circular to shareholders, the transaction needed the approval of the ministry in charge of electricity and Kuala Lumpur Sentral Sdn Bhd (KLSSB) for the change in the shareholding of MUSB.

The approval of KJTS’ shareholders was given last year. So it is likely that the approval of the ministry and KLSSB are still pending.

Since KJTS’ acquisition of MUSB was announced a year ago, there have been several extensions because the CPs had not been met. In the latest development, the company has told analysts that it would not be able to meet the CPs by Feb 3, which is the next deadline.

Considering the sharp drop in KJTS’ share price, it is obvious that the market has not taken the delays well.

On that score, it is fortunate that the special issue of shares to bumiputera investors was poorly received. Otherwise, many would be facing paper losses now.

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