KUALA LUMPUR (May 12): Loss-making G3 Global Bhd (KL:G3) has proposed a share capital reduction to offset RM99.3 million in accumulated losses to clean up its balance sheet.

The exercise will eliminate the group’s RM95.33 million in accumulated losses as at end-March, leaving it with retained earnings of RM3.82 million. At the company level, a deficit of RM102.65 million will be reduced to RM3.5 million.

In a filing with Bursa Malaysia on Tuesday, the Internet of Things (IoT) solutions provider said its issued share capital stood at RM132.3 million as at May 1, comprising 4.15 billion shares. This will be reduced to RM33.09 million upon completion of the exercise.

The group said the capital reduction will allow it to better reflect the value of its underlying assets and overall financial position, while strengthening its balance sheet and credibility with stakeholders, including bankers, customers and investors.

It added that wiping out accumulated losses would also place the group in a better position to resume dividend payments in the future, subject to a return to profitability and funding requirements.

The exercise is expected to be completed by the first quarter of 2027.

For the first quarter ended March 31, 2026, G3’s net loss widened to RM3.3 million from RM17,000 a year earlier, as revenue plunged 88.1% to RM379,000 from RM3.17 million, dragged by weaker contributions from its ICT division’s artificial intelligence solutions segment, including the AIS3 project to design and develop the airport integrated security and safety system for KLIA Terminal 1 and KLIA Terminal 2, and the absence of revenue from its healthcare division.

Shares in G3 closed unchanged at 1.5 sen on Tuesday, giving it a market capitalisation of RM46.7 million.