PUC Berhad Proposes Substantial RM350 Million Share Capital Reduction to Offset Accumulated Losses
Executive Summary
PUC Berhad has announced a significant corporate exercise involving the proposed reduction of its issued share capital by RM350 million. This move, subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 14 July 2026, is aimed at rationalizing the company’s financial position by offsetting its accumulated losses. The proposal is seen as an effort to reflect the true value of the company’s underlying assets and to improve its financial presentation to stakeholders, potentially making PUC Berhad a more attractive investment opportunity.
Key Points of the Proposal
- Quantum of Reduction: The proposed cancellation amounts to RM350 million of the company’s issued share capital, which is substantially unrepresented by available assets.
- Purpose: The credit arising from this reduction will be used to set off the company’s accumulated losses (RM413.87 million at company level, RM331.22 million at group level as at 31 December 2025). Any surplus will be credited to retained earnings.
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Impact on Shareholders:
- No change in the number of shares held by existing shareholders.
- No payment will be made to shareholders, and there will be no cash outflow except for expenses related to this exercise.
- No adjustment to the share price will result directly from this reduction.
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Rationale:
- To rationalize the group’s financial positions and reflect more accurately the value of its assets.
- Improve credibility with banks, suppliers, customers, and investors by removing historical accumulated losses from the books.
- Potentially enhances the group’s ability to declare dividends in the future when profitability returns.
- May increase attractiveness to future investors and support future equity fund-raising exercises.
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Financial Effects:
- Issued share capital will reduce from RM467.5 million to RM117.5 million, with the number of shares unchanged at 3,048,011,000.
- Net assets per share remain unchanged at RM0.04 post-reduction.
- Gearing ratio and borrowings remain unaffected.
- No material impact on earnings or EPS for FY2026.
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Approval Process & Timeline:
- Requires only shareholder approval at the EGM (no court approval needed).
- Expected completion by Q4 2026, subject to all procedural requirements being met.
Historical Financial Performance
The group has faced continuous losses over the past five years, primarily due to administrative and selling expenses exceeding revenue. Between 2021 and the 18-month financial period ending December 2025, annualized revenues ranged from RM18.03 million to RM74.44 million, while losses after tax (LAT) ranged from RM51.6 million to RM74.6 million. The company has undertaken various restructuring and operational improvement initiatives, including the rationalization of non-performing assets and enhancement of credit control and operational efficiency.
Ongoing and Pending Corporate Exercises
- Proposed Employee Share Scheme (ESS): Approved by shareholders but yet to be implemented (up to 30% of issued shares).
- Pictureworks International Holdings Limited Listing: PUC holds a 13.76% stake; Pictureworks has filed for Nasdaq listing, pending regulatory approval.
- Acquisition of GenieX Lab Sdn Bhd: Pending completion.
- Disposal of PUC Capital Sdn Bhd: Pending completion, involving a nominal cash consideration, the discharge of intercompany payables, and novation of liabilities.
Material Litigation and Commitments
- Material Litigation: PUC’s former associate Presto Mall Sdn Bhd (PMSB) is subject to a winding-up order following a default judgment for RM4.7 million in favor of Celcom. PUC has fully impaired its investment in PMSB and has disposed of its shareholding, so no material impact is expected on the group.
- Contingent Liabilities: The company has several outstanding corporate guarantees, mainly related to loan facilities and redeemable preference shares of subsidiaries, totaling over RM15 million.
Share Price Information
PUC Berhad’s shares have traded between RM0.010 and RM0.035 over the past 12 months. The last traded price before the announcement was RM0.025, and RM0.020 as of the last practicable date.
What Shareholders Must Know (Potentially Price Sensitive)
- This exercise is purely an accounting adjustment, but it removes a significant historical overhang of accumulated losses from PUC’s books, potentially paving the way for future dividends if profitability returns.
- No dilution of shareholding or cash payout to shareholders.
- Successful completion could improve market perception and potentially support the share price, especially if followed by operational improvements and return to profitability.
- Investors should monitor the outcome of pending corporate actions (employee share scheme, associate’s Nasdaq listing, acquisitions/disposals).
Next Steps for Shareholders
- EGM Date: 14 July 2026, 2.00 p.m., Dewan Presiden, Kelab Golf Negara Subang, Petaling Jaya.
- Proxy Submission Deadline: 12 July 2026, 2.00 p.m. (physical/email/electronic submission accepted).
All shareholders are encouraged to read the full circular and appendices before making a decision. The Board unanimously recommends voting in favour of the proposal.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please refer to the official company circular and seek professional advice before making investment decisions. The information is derived from PUC Berhad’s official shareholder circular dated 11 June 2026. Market conditions and company circumstances may change, and this summary may not capture all nuances of the proposed exercise.
Versi Bahasa Malaysia
PUC Berhad Cadang Pengurangan Modal Saham Berjumlah RM350 Juta Untuk Menghapuskan Kerugian Terkumpul
Ringkasan Eksekutif
PUC Berhad telah mengumumkan satu langkah korporat penting iaitu pengurangan modal saham terbitan sebanyak RM350 juta. Langkah ini, tertakluk kepada kelulusan pemegang saham pada Mesyuarat Agung Luar Biasa (EGM) yang dijadualkan pada 14 Julai 2026, bertujuan untuk merasionalisasikan kedudukan kewangan syarikat dengan menghapuskan kerugian terkumpul. Cadangan ini dilihat sebagai usaha untuk mencerminkan nilai sebenar aset syarikat dan memperbaiki persepsi kewangan kepada pemegang kepentingan, sekali gus berpotensi menjadikan PUC Berhad pelaburan yang lebih menarik.
Fakta Penting Cadangan
- Kuantum Pengurangan: Pembatalan sebanyak RM350 juta modal saham terbitan yang tidak diwakili aset tersedia.
- Tujuan: Kredit yang timbul akan digunakan untuk menghapuskan kerugian terkumpul syarikat (kerugian terkumpul RM413.87 juta di peringkat syarikat, RM331.22 juta di peringkat kumpulan setakat 31 Disember 2025). Baki kredit akan dimasukkan sebagai pendapatan tertahan.
- Kesan kepada Pemegang Saham:
- Tiada perubahan pada jumlah saham yang dipegang oleh pemegang saham sedia ada.
- Tiada pembayaran tunai kepada pemegang saham, dan tiada aliran keluar tunai kecuali untuk kos berkaitan.
- Tiada pelarasan kepada harga saham secara langsung akibat pengurangan ini.
- Rasional:
- Untuk merasionalisasikan kedudukan kewangan kumpulan dan mencerminkan nilai sebenar aset.
- Memperbaiki kredibiliti dengan bank, pembekal, pelanggan, dan pelabur dengan menghapuskan kerugian terkumpul sejarah dari buku syarikat.
- Berpotensi meningkatkan keupayaan pengisytiharan dividen apabila keuntungan kembali.
- Boleh meningkatkan daya tarikan kepada pelabur masa depan dan menyokong pengumpulan dana ekuiti masa depan.
- Kesan Kewangan:
- Modal saham terbitan akan berkurang daripada RM467.5 juta kepada RM117.5 juta, tanpa perubahan pada bilangan saham (3,048,011,000).
- Aset bersih sesaham (NA per share) kekal pada RM0.04.
- Tiada kesan kepada nisbah gearan atau pinjaman.
- Tiada kesan material kepada pendapatan atau LPS untuk tahun kewangan 2026.
- Proses Kelulusan & Jangka Masa:
- Hanya memerlukan kelulusan pemegang saham di EGM (tidak memerlukan kelulusan mahkamah).
- Dijangka selesai pada suku keempat 2026.
Pencapaian Kewangan Terdahulu
Kumpulan telah mengalami kerugian berterusan selama lima tahun, terutamanya kerana perbelanjaan pentadbiran dan jualan yang melebihi hasil. Langkah-langkah penstrukturan dan penambahbaikan operasi telah diambil termasuk rasionalisasi aset tidak berprestasi dan penambahbaikan kawalan kredit.
Latihan Korporat Tertunda dan Sedang Berjalan
- Cadangan Skim Saham Pekerja (ESS)
- Penyenaraian Pictureworks International Holdings Limited (PUC pegangan 13.76%) di Nasdaq
- Pemerolehan GenieX Lab Sdn Bhd
- Pelupusan PUC Capital Sdn Bhd
Litigasi Material dan Komitmen
- Litigasi utama melibatkan PMSB yang kini dalam proses penggulungan tetapi tidak dijangka memberi kesan material kepada PUC.
- Jaminan korporat bernilai lebih RM15 juta berkaitan kemudahan pinjaman dan saham keutamaan boleh tebus anak syarikat.
Maklumat Harga Saham
Saham PUC Berhad diniagakan antara RM0.010 hingga RM0.035 untuk 12 bulan lalu. Harga terakhir sebelum pengumuman ialah RM0.025, dan RM0.020 pada tarikh praktikal terakhir.
Makluman Penting Kepada Pemegang Saham (Bersepadu Harga)
- Latihan ini adalah pelarasan perakaunan tetapi menghapuskan kerugian terkumpul sejarah yang besar, berpotensi membolehkan dividen pada masa depan.
- Tiada pencairan pegangan atau pembayaran tunai kepada pemegang saham.
- Penyelesaian berjaya boleh memperbaiki persepsi pasaran dan menyokong harga saham, terutama jika disusuli peningkatan operasi dan keuntungan.
- Pemegang saham perlu memantau hasil latihan korporat tertunda.
Tindakan Pemegang Saham
- Tarikh EGM: 14 Julai 2026, 2.00 petang, Dewan Presiden, Kelab Golf Negara Subang, Petaling Jaya.
- Tarikh Akhir Hantar Proxy: 12 Julai 2026, 2.00 petang.
Semua pemegang saham disarankan membaca pekeliling penuh sebelum membuat keputusan. Lembaga Pengarah sebulat suara mencadangkan undian menyokong resolusi ini.
Penafian: Artikel ini adalah untuk tujuan maklumat sahaja dan bukan nasihat pelaburan. Sila rujuk dokumen rasmi syarikat dan dapatkan nasihat profesional sebelum membuat keputusan pelaburan. Maklumat dipetik dari Pekeliling PUC Berhad bertarikh 11 Jun 2026 dan tertakluk kepada perubahan pasaran dan syarikat.
