Priceworth plans capital reduction of RM210m to eliminate accumulated losses

KUALA LUMPUR (July 5): Priceworth International Bhd has proposed a capital reduction to eliminate its accumulated losses.

The Sabah-based timber manufacturer said the exercise entails the reduction of RM210 million of its issued share capital, which totalled RM441.85 million as at the latest practicable date of June 6.

The corresponding credit of RM210 million, it said, will be used to eliminate the group's accumulated losses of RM202.6 million as of Dec 31, 2022.

“The proposed capital reduction will eliminate Priceworth's accumulated losses via reduction and cancellation of the current issued share capital of the company to more accurately reflect the value of the underlying assets and the financial position of the company,” the group said in a filing with Bursa Malaysia on Wednesday (July 5).

Priceworth said the exercise will also enhance its financial profile with its bankers, customers, suppliers, investors and other stakeholders following the elimination of the accumulated losses.

Upon completion of the capital reduction, Priceworth will have an enlarged share capital of RM231.85 million, comprising 1.45 billion shares.

The exercise is expected to be completed by the fourth quarter of 2023, the group said.

Shares in Priceworth closed unchanged at 15 sen on Wednesday, valuing the group at RM232.27 million.