Vizione to cut share capital by RM500m to offset accumulated losses

• After the proposed capital reduction, Vizione is expected to narrow its accumulated losses to RM20.75 million at the company level, while the group is projected to post retained earnings of RM305.71 million.

KUALA LUMPUR (March 5): Construction player and property developer Vizione Holdings Bhd (KL:VIZIONE) has proposed a share capital reduction of up to RM500 million to eliminate its accumulated losses and strengthen its financial position.

In a bourse filing on Wednesday, the company said the exercise will involve the cancellation of share capital that is lost or unrepresented by available assets, with the full RM500 million credit arising from the reduction to be used to offset the company’s accumulated losses.

As of Nov 30, 2024, Vizione’s accumulated losses stood at RM520.60 million at the company level and RM194.1 million at the group level. After the proposed capital reduction, Vizione is expected to narrow its accumulated losses to RM20.75 million at the company level, while the group is projected to post retained earnings of RM305.71 million.

The company clarified that the exercise will not affect the number of shares in issue, the shareholdings of existing shareholders or result in any cash outflows.

There will also be no changes to the group's net assets (NA) or gearing ratio, apart from RM150,000 in estimated expenses for the exercise, which will be funded internally.

Vizione’s issued share capital currently stands at RM688.42 million, comprising 552.53 million shares. Post-capital reduction, the share capital will be reduced to RM188.42 million, with the number of shares remaining unchanged.

The share capital reduction is subject to shareholder approval at an upcoming extraordinary general meeting (EGM) and is expected to be completed by the second quarter of 2025, pending all necessary approvals. TA Securities has been appointed the principal adviser for the exercise.

Vizione shares closed at 10 sen on Wednesday, up 0.5 sen or 5.26%, giving the company a market capitalisation of RM55.25 million.

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