PETALING JAYA, Magma Group Bhd has successfully concluded its capital reduction exercise amounting to RM379.21 million, a move aimed at fortifying its balance sheet and improving its financial agility to support future growth and expansion initiatives.
In a statement, the company said the completion of the exercise was formalised following the lodgement of the High Court of Malaya’s sealed order with the Companies Commission of Malaysia (SSM) on Aug 13, 2025. This came after the Special Resolution approving the proposal was passed by shareholders at the company’s extraordinary general meeting (EGM) held on March 21, 2025.
Under the exercise, Magma’s issued share capital has been reduced from RM669.15 million to RM289.94 million, representing the cancellation of RM379.21 million from its share capital account. Importantly, the number of shares in circulation remains unchanged at 1.68 billion, meaning that the exercise has no dilutive effect on shareholders’ equity ownership.
Magma noted that the capital reduction is expected to provide the group with greater financial flexibility, enabling it to optimise its capital structure, strengthen its financial position, and channel resources more efficiently towards business expansion and value creation for stakeholders.
