K-One Technology Bhd is planning a RM46 million capital reduction and repayment exercise following the proposed RM94 million disposal of its cloud business arm, Global Access Points Sdn Bhd (GAP).
The exercise is aimed at streamlining K-One’s capital structure and balance sheet, including reducing its accumulated losses, while allowing the group to return excess capital to shareholders.
K-One said the proposed exercise could pave the way for a special distribution of up to RM75 million, or nine sen per share, based on its 832 million issued shares as at Aug 10.
The proposed payout comprises a cash dividend of up to six sen per share, or RM47.6 million, and a capital repayment of three sen per share, amounting to RM27.4 million.
The special distribution will only be carried out after the completion of the GAP disposal. K-One also noted that the nine sen per share figure is only a preliminary estimate.
Following the capital reduction, K-One’s issued share capital will fall to RM77.64 million from RM123.64 million.
Of the RM46 million credit generated from the exercise, RM27.41 million will be used for the capital repayment, RM12.58 million to offset accumulated losses, and RM6.02 million retained as a buffer against future losses.
K-One’s accumulated losses stood at RM8.17 million as at Dec 31, 2025.
Following the disposal and capital reduction, the group’s retained earnings are expected to increase to RM85.38 million. This would then fall to RM10.38 million after the proposed RM75 million distribution.
The exercise will not involve any cancellation of shares or changes to shareholders’ ownership stakes.
K-One expects its share price to be theoretically adjusted to 5.5 sen, compared with its closing price of 14.5 sen on Aug 10.
Last Tuesday, K-One announced that it had agreed to dispose of its entire stake in GAP, an information and communication technology solutions provider, for RM94 million to Tokyo-listed ITOCHU Corp and its Singapore-based unit.
UOBKH is acting as adviser for the proposed capital reduction and repayment exercise.
K-One shares closed half a sen, or 3.57%, higher at 14.5 sen, giving the company a market capitalisation of RM121 million.
