KUALA LUMPUR (Sept 8): Theta Edge Bhd (KL:THETA) has secured a five-year contract from Prasarana Malaysia Bhd to build and operate telecommunications infrastructure along the Light Rail Transit 3 (LRT3) or Shah Alam Line.

In a bourse filing on Tuesday, the group said its wholly-owned subsidiary Theta Telecoms Sdn Bhd (TTEL) has been appointed by Prasarana’s unit Prasarana Integrated Development Sdn Bhd as the network operator and strategic partner for the development of a common telecommunications network infrastructure along the LRT3 right of way.

Under the contract, Theta Telecoms will install, operate, maintain and service the required telecommunications hardware and provide network telecommunications services along the LRT3 corridor.

Prasarana will receive the higher of RM500,000-a-year or 13% of the project’s gross revenue, with the remaining revenue accruing to Theta Telecoms.

The initial contract runs for five years from Sept 1 and may be renewed for two successive five-year periods, subject to Prasarana’s assessment of Theta Telecoms’ performance and compliance with the contract terms, said Theta Edge.

The group said that as strategic partner, Theta Telecoms will monetise LRT3’s right of way through telecommunications services along the tracks, stations and other developments, as well as value-added services targeting enterprise customers.

Theta Telecoms will also be responsible for the design, installation, protection and maintenance of all cables, fibre, trunking, equipment and other infrastructure within the railway right of way, ensuring these do not interfere with train operations or existing railway, signalling, power, communications and safety systems.

“The project represents an opportunity for Theta to leverage on its existing expertise and venture into a recurring income generating project to ensure a steady stream of revenue and cashflow in the future and ride on the future data demand growth in the area,” Theta Edge said.

It said the project will be funded through internally generated funds or borrowings. As at end-June, the group had cash of RM23.85 million and total borrowings of RM9.14 million.

Theta Edge has been loss-making annually since 2024. For the six months ended June 30, 2026, its net loss narrowed to RM7.77 million from RM10.21 million a year earlier, while revenue increased to RM11.58 million from RM9.03 million.

Stealth Solutions Sdn Bhd is Theta Edge’s largest shareholder, with a 27.28% stake following Lembaga Tabung Haji’s disposal of its entire stake on Jan 6. Stealth Solutions is 75%-owned by Datuk Amrul Hisyam Alias and 25% by Norul Azwani Mohd Hanafi, according to the Companies Commission of Malaysia.

Shares of Theta Edge closed down half a sen or 0.78% to 63.5 sen on Tuesday, giving the ICT solutions provider a market capitalisation of RM74.32 million.