KUALA LUMPUR (June 26): Systech Bhd (KL:SYSTECH) is proposing to change its name to WTS Capital Bhd, while undertaking a RM40 million share capital reduction exercise. The capital reduction is part of its efforts to strengthen its financial position and address accumulated losses.
In a filing on Bursa Malaysia, Systech said the rebranding exercise is intended to better align its corporate identity with its future direction.
The proposed capital reduction involves cancelling part of the company’s share capital to offset accumulated losses, with any remaining balance used for general corporate purposes. The move is a way to reduce accumulated losses without affecting the company’s cash flow.
As at end-March 2026, the group’s unaudited accumulated losses amounted to RM37.51 million at the company level, and RM36.78 million at the group level.
Systech said the proposed share capital reduction could enhance its standing with financiers, suppliers and other stakeholders, while supporting future business expansion and funding flexibility.
It stressed that the proposal does not involve any cash payout to shareholders.
It will also not change the number of shares in issue, alter existing shareholdings, or have any impact on the trading price of Systech shares.
As at the latest practicable date, Systech said it had an issued share capital of about RM159.73 million comprising 708.7 million shares, excluding treasury shares. The group said it also has over 160 million outstanding warrants, although these are currently out-of-the-money based on recent trading levels.
After the capital reduction, the company’s share capital will stand at RM119.36 million, comprising 706.89 million shares.
Systech said it expects the exercise to proceed without the need for High Court approval, subject instead to shareholder approval at an extraordinary general meeting and subsequent registration with the Companies Commission of Malaysia (SSM).
Completion is targeted for the fourth quarter of 2026.
Separately, the name change to WTS Capital will also require shareholder approval, after which it will take effect upon issuance of the notice of registration of new name by the SSM.
Apex Securities Bhd has been appointed as the adviser for the corporate exercise.
Systech’s shares ended up by 1.5 sen or 9.4% at 17.5 sen at Friday’s market close, giving it a market value of RM124 million.