KUALA LUMPUR (March 4): Raya Aviation Holdings, parent of cargo carrier Raya Airways, becomes NexG Bhd’s (KL:NEXG) largest shareholder after taking control of two private companies tied to NexG’s current and former executives.

A bourse filing on Wednesday (March 4) showed Raya Aviation now holds 711.7 million shares, or a 20.4% stake in NexG, following its takeover of Skyelimit Alliance Sdn Bhd (561.7 million shares, 16.1%) and Trendtrove Tradin Sdn Bhd (150 million shares, 4.3%).

Records from the Companies Commission of Malaysia (SSM) show Raya Aviation’s ultimate owner is unclear, with 99% of the company held by CIMB Islamic Trustee Bhd.

Its directors are Mohamad Yusof Ishak and Mohamad Najib Ishak, with Tan Tong Lang serving as secretary. Mohamad Najib is Raya Airways’ group managing director. Raya Aviation was formerly known as Amrul Nizar Anuar Resources Sdn Bhd before a name change on Dec 22, 2020. Raya Airways Sdn Bhd was previously known as Transmile Air Services.

Skyelimit Alliance was wholly owned by Tan Sri Mohd Khairul Adib Abd Rahman, who resigned as NexG’s executive deputy chairman in October 2025, less than six months after his appointment.

Khairul Adib has held equity in NexG through Skyelimit Alliance and Kuantum Juang Sdn Bhd, the latter being 99.9% owned by RHB Trustees Bhd.

Meanwhile, Trendtrove Tradin was wholly owned by NexG’s executive director Datuk Ab Hamid Mohamad Hanipah who transferred his shares in Trendtrove Tradin to his son Anwar Ab Hamid in October 2025. A March 4 filing shows Anwar has since ceased to be a shareholder of Trendtrove Tradin.

Notably, both Skyelimit Alliance and Trendtrove Tradin hold pledged securities accounts with Velocity Capital Sdn Bhd, the financing arm of Velocity Capital Partner Bhd (KL:VELOCITY).

NexG’s other substantial shareholder is executive chairman and group CEO Datuk Abu Hanifah Noordin, who holds a 9.58% stake.

Even though NexG won four government contracts worth over RM2.5 billion, it has faced setbacks because it bought volatile penny stocks that have since lost most of their value.

In its latest financial results, the group reported a net loss of RM130.88 million for the third quarter ended Dec 31, 2025 (3QFY2026), due to a fair value loss of RM145.6 million on “other investments".

NexG suffered heavy losses on two investments.

NexG spent RM88 million to buy 220 million MMAG Holdings Bhd (KL:MMAG) shares at 40 sen each, equivalent to a 9.53% stake, but the share price has since dropped 94% to 2.5 sen.

NexG’s 32.61% stake in Classita Holdings Bhd, now NexG Bina Bhd (KL:NEXGBINA), and 414.31 million warrants, bought for RM76.78 million, are now worth RM20.1 million, an 80% loss, with shares at 3 sen and warrants at 1 sen.

Adding to the intrigue, Velocity Capital also invested in MMAG around the same time as NexG. In March last year, Velocity spent RM60 million on the shares at 40 sen apiece, equivalent to a 6.494% stake.

However, it exited the investment in January this year, disposing of its entire stake in two tranches—32.6 million shares on Jan 9 and 117.4 million shares on Jan 12—at about 6.5 sen, realising a loss of nearly 84%.

NexG’s cash position has weakened, with total cash falling to RM47.11 million from RM73.21 million a year earlier. Its cash balance more than halved to RM25.5 million from RM61.6 million, though deposits with banks rose to RM21.61 million from RM11.61 million.

The group’s total borrowings stood at RM53.77 million, comprising RM38.87 million in short-term debt and RM14.9 million in long-term obligations.

NexG shares fell 1 sen, 3.6%, to 27 sen on Wednesday, valuing the company at RM942 million. The stock has nearly halved from the 52 sen in October last year.