AwanBiru Technology Berhad Proposes Renewal of Share Buy-Back Authority: What Investors Should Know

KUALA LUMPUR, 22 April 2026 – AwanBiru Technology Berhad (Awantec) has issued a comprehensive statement to shareholders regarding the upcoming resolution for the proposed renewal of its authority to buy back up to 10% of its issued shares, to be tabled at its Fifteenth Annual General Meeting (AGM) on 21 May 2026 at the Putrajaya Marriott Hotel.

Key Highlights of the Proposed Renewal

• Renewal of Share Buy-Back Authority: Awantec seeks shareholder approval to renew the authority to repurchase up to 10% of the company’s total issued shares, a move that follows the expiry of the previous mandate at the conclusion of the 15th AGM. This renewal is in accordance with Bursa Malaysia’s Main Market Listing Requirements.
• Quantum and Limits: The company may purchase and/or hold up to 78,999,671 shares based on its current issued share capital of 789,996,711 shares. As at the latest practicable date (LPD), Awantec has already purchased 1,698,500 shares held as treasury shares, leaving a balance of 77,301,171 shares available for further buy-back.
• Duration: The renewed authority, if approved, remains effective until the next AGM, or until revoked earlier by shareholders.
• Use of Repurchased Shares: Shares bought back may be cancelled, held as treasury shares, distributed as share dividends, resold on Bursa, transferred as consideration for purchases, used for employee share schemes, or dealt with as allowed by relevant authorities.
• Funding: The buy-back may be financed through internally generated funds and/or bank borrowings. Importantly, the aggregate funds used must not exceed the company’s retained profits.
• Current Financial Position: As at the end of 2025, Awantec recorded accumulated losses of RM73.28 million. The source of funding for the buy-back will be determined at the time of execution, based on available resources and prevailing market conditions.

Potential Price-Sensitive Implications for Shareholders

• Impact on Share Value: Share buy-backs are typically viewed positively by the market as they can enhance earnings per share (EPS), provide support to share prices during periods of volatility, and reflect management’s confidence in the company’s future prospects. If executed when shares are undervalued, buy-backs can result in potential gains if treasury shares are resold at higher prices.
• Shareholder Equity and Voting: Purchased shares held as treasury shares will have their rights suspended, including voting and dividend rights, and will not be counted towards shareholding calculations for substantial shareholder notifications, take-overs, or meeting quorums.
• Potential Disadvantages:
  • Immediate reduction in the company’s financial resources, which could otherwise be used for alternative investments or dividend payouts.
  • Could decrease resources available for dividends if significant funds are allocated to buy-backs.
  • May result in missed opportunities if better investments arise.
• Public Shareholding Spread: The company’s current public shareholding spread is approximately 58.5%. Management will not proceed with share buy-backs if doing so would reduce the public float below the 25% threshold required by Bursa Malaysia.
• Take-Over Implications: Under the Malaysian Code on Take-Overs and Mergers, any party whose shareholding increases beyond 33% due to buy-backs may be obliged to make a mandatory general offer for the remaining shares, unless an exemption is granted. The company intends to avoid triggering such obligations.

Financial and Shareholding Impact

• Share Capital: If the full 10% maximum buy-back is executed and shares are cancelled, the company’s issued shares would decrease from 789,996,711 to 710,997,040.
• Net Assets (NA): NA per share would decrease if the repurchase price exceeds NA per share, and increase if otherwise. Resale of treasury shares at a profit would also improve NA.
• Earnings: EPS is expected to improve due to a lower share base, but the effect on overall earnings depends on the amount spent, funding costs, and lost interest income.
• Gearing and Working Capital: If funded by borrowings, company gearing would increase. Buy-backs reduce working capital, but reselling treasury shares can replenish cash flow.
• Dividends: No expected change in dividend policy, but treasury shares may be distributed as share dividends in the future.

Shareholders’ Interests and Voting

• Impact on Major Shareholders: The buy-back will proportionally increase the shareholding percentages of all shareholders, including major shareholders such as Maybank Trustees Berhad Areca Dynamic Growth Fund, Eco Cloud Assets, and others.
• Directors’ Recommendation: The Board unanimously recommends that shareholders vote in favour of the resolution, citing the proposal as being in the best interests of the company and its shareholders.
• Submission of Proxy: Shareholders unable to attend the AGM can submit their proxy forms physically or electronically at least 48 hours before the meeting.

Historical Share Price Data

For the 12 months prior to March 2026, Awantec shares traded between RM0.265 and RM0.375. The last traded price on the LPD was RM0.270.

Additional Information for Investors

• No Recent Material Contracts or Litigation: The company has not entered into any material contracts outside its ordinary course of business in the last two years and is not involved in any material litigation.
• Inspection of Documents: Shareholders can inspect the company’s constitution and audited financial statements at the registered office by appointment.

Conclusion

The proposed renewal of the share buy-back authority is a significant corporate action that has the potential to support Awantec’s share price, enhance shareholder value, and provide flexibility for capital management. However, investors should note the company’s accumulated losses and carefully assess the impact on future dividends and capital allocation. The outcome of the AGM and the subsequent execution (or non-execution) of the buy-back mandate could be a key catalyst for Awantec’s share price in the coming months.

Shareholders are strongly encouraged to read the full statement in the company’s annual report and consider all implications before voting at the AGM.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their financial advisors and review all official company disclosures and statements before making investment decisions. The author and publisher accept no liability for any losses arising from reliance on this information.

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