KUALA LUMPUR (Feb 13): Fruit Plus candy and confectionary manufacturer Khee San Bhd (KL:KHEESAN) said it will again seek shareholders' nod for its proposed share capital reduction (SCR) exercise that had been approved in October 2024. 

The step is necessary to comply with the Companies Act, it said, which requires the resolution to take effect within seven days from approval. 

The SCR is part of the group's regularisation plan to exit its Practice Note 17 status. 

First proposed in 2024, the plan includes an SCR of slightly above RM100 million — later increased to RM137.52 million — to slash its retained losses. 

The group also raised RM77.12 million via a rights issue at 10 sen per share, which was 80.25% subscribed in 2025 to repay creditors under a scheme of arrangement and fund its working capital. It has repaid the banks, according to a separate filing.

Shares of Khee San last traded at 12 sen per share, giving it a market capitalisation of RM129.5 million.  

The deadline for the regularisation plan is Feb 18 (next Wednesday), although Khee San has sought regulator approval for an extension until Aug 18.

Hit by the pandemic and classified as a PN17 firm in 2021, Khee San has turned to profit since the financial year ended June 30, 2023. 

Its largest shareholders include newly appointed executive chairman Datuk Seri Ngu Tieng Ung and Ngu Chienn Ying with 26.69% held via Heritage Winners Sdn Bhd, as well as Yong Seng Chen with a 6.6% direct stake.