Kuala lumpur: DGB Asia Bhd, a software and engineering solutions company, proposes to undertake a capital reduction exercise via the cancellation of its issued share capital, which is lost and unrepresented by available assets of RM197 million. In a filing with Bursa Malaysia, the company said the corresponding credit of RM197 million arising from such cancellation would be used to set off against the accumulated losses of the company.

According to BERNAMA News Agency, as of September 10, 2025, the total issued share capital of the company is RM240,336,110, comprising 278,243,279 ordinary shares. It also noted that DGB Asia has 52,272,900 outstanding share issuance scheme (SIS) options and that the board has undertaken not to grant any further SIS options until the completion of the proposed capital reduction.

DGB Asia stated, “The proposed capital reduction will enable the company and the group to rationalise their financial positions by reducing the accumulated losses of the company.” The move is expected to enhance the company’s and the group’s credibility with entities such as bankers, customers, suppliers, and investors.

The company also clarified that the proposed exercise will not have any material effect on the group’s earnings and earnings per share for the financial year ending December 31, 2025.