KUALA LUMPUR (Oct 30): Cuscapi Bhd (KL:CUSCAPI) has proposed a capital reduction of up to RM190 million to eliminate losses of RM143.2 million it had accumulated as at Dec 31, 2025.
The proposal comes about a month after the business solutions provider's private placement of 94.5 million new shares was approved.
It expects to retain earnings of RM46.29 million from the capital reduction.
In a bourse filing on Friday, the company said the exercise would rationalise its financial position, better reflect the value of its assets and enhance its standing to enable it to secure better financing and business opportunities.
As at Oct 16, Cuscapi’s issued share capital stood at RM203.37 million, comprising 944.88 million shares. In the filing's illustrative example, the private placement shares could increase its share capital to up to 1.04 billion shares.
Separately, Cuscapi proposes offering up to 15% of its total issued shares to eligible persons, including the group’s non-executive directors, under a share issuance scheme (SIS) with a five-year vesting period.
The issue price will be determined by the board, based on the five-day volume-weighted average market price (VWAP) of Cuscapi shares immediately preceding the date of offer, with a discount of not more than 10%.
Proceeds from the scheme will be used for the group’s working capital.
Both proposals are subject to approval from Bursa Malaysia Securities, shareholders at an upcoming extraordinary general meeting (EGM), and other relevant parties or authorities, where required. They are expected to be completed by the second quarter of 2027.
A previous substantial shareholder of Cuscapi was Zetrix AI Bhd (KL:ZETRIX) managing director Wong Thean Soon, whose stake came under pressure following margin calls. He disposed of a nearly 11% stake through a direct business transaction in mid September, paving the way for investor Tan Boon Seng to emerge as a substantial shareholder.
Wong still holds a 2.5% stake in Cuscapi.
Shares of Cuscapi closed down half a sen or 11.11% at four sen on Friday, giving it a market capitalisation of RM34.02 million.