Kuala lumpur: Komarkcorp Bhd has proposed a share capital reduction of RM148.70 million to offset its significant accumulated losses.

According to BERNAMA News Agency, in a filing with Bursa Malaysia, the company indicated its decision to undertake the share capital reduction via Section 117 of the Companies Act 2016. This approach is deemed more expedient and less costly compared to Section 116 of the Act.

Komarkcorp reported that at the group level, it recorded accumulated losses amounting to RM118.36 million as of the end of September 2025. Following the capital reduction, the group is anticipated to report retained earnings of RM30.33 million.

The company stated, "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 company believes that reducing accumulated losses will enhance its credibility with bankers, customers, suppliers, investors, and other stakeholders. The proposal is not expected to materially affect the group's consolidated earnings for the financial year ending June 30, 2026.

Komarkcorp also noted, "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."