Long ago I saw a kid with a few very tasty looking candies.  I really wanted one.  I could snatch a candy from him when he was distracted.  But taking candy from a baby is a no-no.  So, I asked for the candy and I was flatly refused.  The kid told me: if I gave you candy, I would have to give it to everyone else.

Barakah sure learnt that important lesson in life.  They treated all equally bad in the past: investors, creditors, subcontractors, and clients.  In a way, that made it fair.  Barakah’s needs were put first, ahead of the others.  Others knew what to expect. And there is plenty of litigation to prove the notion.

That came to an end with the PN17 Regularisation Plan. According to the Plan Barakah proposed:

    (ii) To undertake a proposed shares consolidation of existing 10 Barakah Shares into 1 consolidated Barakah Share (“Consolidated Share”) (“Proposed Share Consolidation”);

    (iii) Pursuant to the Proposed Share Consolidation, the Proposed Shares Issuance shall entail the subscription by Mr Zainal or his nominee for 5,000,000 Subscription Shares at RM0.20 each;

So, the Company will issue 5 million new shares to Mr. Zainal at RM 0.2 a share, which trades at RM 0.5 per new share at the time of writing, considering consolidation (10 shares now cost RM 0.50 and they will become 1).  I have no idea who Mr. Zainal is. Maybe he has friends at Barakah, or at Malacca Securities Sdn Bhd, who prepared the Regularisation Plan. The company sure loves him, and is ready to shower him with all the love they feel.

Most investors paid between RM 0.03 to RM 1.80 for their shares before consolidation.  And they are NOT entitled to buy 50 million at a discount.  They are entitled to buy 4 times what they already have. That is according to the Plan.

To be fair, Mr. Zainal should be offered same deal.  Since he has 0 shares, he should be entitled to:

0 x 4 = 0 new shares

This new experience has taught us that Barakah Management sure does NOT mind stealing candy from a baby.  I suspect that the management must have done it in the past in order to become appointed as a rite of passage. That is why the company patronized a few orphanages.  I read that in the Annual Report 2022. But stealing from shareholders to give to Mr. Zainal is another thing. There will be an Extraordinary General Meeting (EGM) to approve the PLAN, and a few attendees may not be too happy at that time. Unless, as the kid told me, if barakah gives 5 million shares to Mr. Zainal at discount, they give 5 million to everyone else as well.