Zetrix AI offers 789 mil share options at 28% discount amid cash flow, sukuk pressures

Saturday 24 Oct 2026

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KUALA LUMPUR (Oct 23): Zetrix AI Bhd (KL:ZETRIX) has offered 788.83 million employee share options at a 28% discount to its Friday closing price, with recipients able to exercise them immediately, as the group faces cash flow pressures and a sukuk covenant breach.

In a filing with Bursa Malaysia on Friday, the group said the options were offered to eligible directors and employees of the company and its non-dormant subsidiaries at an exercise price of 5.4 sen each, compared with its closing share price of 7.5 sen on the offer date.

The offer includes 27.5 million options for managing director Wong Thean Soon, and 10 million each for Datuk Dr Norraesah Mohamad, Datuk Mohd Jimmy Wong Abdullah and Wong Kok Chau. The four directors were allocated a combined 57.5 million options, or about 7.3% of the total offer.

If all the options are exercised through the issuance of new shares, Zetrix AI could raise about RM42.6 million. Based on its existing 7.897 billion shares, the new shares would represent about 9.1% of the enlarged share capital, potentially diluting existing shareholders’ ownership by the same proportion.

The announcement did not specify the performance targets or business objectives behind the latest offer.

This is the first share option offer since the scheme was approved in August 2020 and implemented in December that year. It allows options covering up to 10% of the company’s issued shares and expires on Dec 23, 2030.

The timing comes as Zetrix AI seeks to conserve cash amid unexpected operating expenses. On Oct 19, the group withdrew its planned first interim dividend of 0.25 sen per share for the financial year ending June 2026, a move expected to save about RM20 million. It had RM541.6 million in cash as at June 30, 2026.

The group is also facing RM314 million in unremitted collections owed to the Road Transport Department (JPJ). The outstanding amount led to the suspension of Zetrix AI and its subsidiary MyEG Sdn Bhd as JPJ collection agents from Oct 5.

Transport Minister Anthony Loke Siew Fook said the companies would not be reinstated until the outstanding collections were settled. Any reinstatement would also be subject to additional conditions, including direct payments into the government’s account.

Separately, Zetrix AI is dealing with a sukuk covenant breach following a sharp decline in Wong’s shareholding. Forced share sales triggered by margin calls on his share-backed financing facilities reduced his stake to 1.841%, from nearly 30% in August, causing him to lose his position as the group’s largest shareholder.

The group had until Oct 22 to rectify the breach, which had not triggered a payment default at the time. A sukukholders’ meeting the day after the deadline failed to reach a resolution, and another meeting is to be scheduled.

Without a waiver, a dissolution event could be triggered, allowing the trustee to demand immediate repayment of the outstanding sukuk. The group’s obligations comprise RM2 billion in principal and RM164.5 million in future coupon payments.

Shares of Zetrix AI rose 50%, or 2.5 sen, to close at 7.5 sen on Friday, giving the company a market capitalisation of RM605.9 million.

Edited ByPresenna Nambiar

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