Komarkcorp Proposes RM149 Mln Share Capital Reduction To Offset Losses

KUALA LUMPUR, Jan 22 (Bernama) -- Komarkcorp Bhd has proposed a share capital reduction of RM148.70 million to offset its significant accumulated losses.

In a filing with Bursa Malaysia, the company said it decided to undertake the share capital reduction via Section 117 of the Companies Act 2016, rather than via Section 116 of the Act, as it is comparatively more expedient and less costly.

KomarkCorp said that at the group level, it recorded accumulated losses of RM118.36 million as at end-September 2025. 

Following the capital reduction, the group will post retained earnings of RM30.33 million.

“The proposed share capital reduction will enable the company to rationalise its financial position by reducing the accumulated losses to more appropriately reflect the value of the underlying assets and financial position.

“In addition, the reduction of accumulated losses is expected to enhance the credibility of both the company and the group with the bankers, customers, suppliers, investors and other stakeholders,” it said.

It said the proposed undertaking will not have a material effect on the group's consolidated earnings for the financial year ending June 30, 2026. 

“Barring any unforeseen circumstances, the utilisation of the rights issue proceeds pursuant to the proposed variation is expected to contribute positively to the future earnings and earnings per share of the group,” it added.

-- BERNAMA