KUALA LUMPUR (Sept 22): Loss-making MMAG Holdings Bhd (KL:MMAG), a company which counts NexG Bhd (KL:NEXG) as a substantial shareholder, has proposed a RM130 million share capital reduction to wipe out part of the company’s accumulated losses.
NexG is the company’s second largest shareholder with a 9.925% stake, while Future Star Sdn Bhd is its largest shareholder with a 19.904% interest.
The exercise will allow the ACE Market-listed company to eliminate accumulated losses and better reflect the value of its underlying assets, thereby strengthening the group’s financial position and profile with its bankers, customers, suppliers, investors and other stakeholders, according to a bourse filing on Tuesday.
At the group level, MMAG recorded accumulated losses of RM168.6 million as at end-June 2026. Following the proposed capital reduction, accumulated losses will be reduced to RM38.7 million.
At the company level, accumulated losses stood at RM128.6 million, and the exercise will result in retained earnings of RM1.23 million.
As at Sept 11, MMAG’s issued share capital stood at RM298.3 million, comprising 2.32 billion ordinary shares. Following the proposed reduction, its share capital will be reduced to RM168.3 million.
The proposal is subject to shareholders’ approval at an extraordinary general meeting to be convened. The exercise is expected to be completed by the first quarter of 2027.
For its latest first quarter ended June 30, 2026 (1QFY2027), MMAG posted a net loss of RM9.41 million, dragged by its aviation business, which was affected by higher operating costs, including aircraft jet fuel and maintenance costs.
Revenue came in at RM166.1 million, mainly contributed by its mobile and fulfilment, and aviation segments. There were no comparative figures as the company had changed its financial year-end from Sept 30, 2024 to March 31, 2026.
Shares in MMAG ended unchanged at 2.5 sen on Tuesday, valuing the group at RM58 million.