KUALA LUMPUR (Nov 28): Hextar Technologies Solutions Bhd (HexTech) has revised the ratio for its proposed bonus issue from 30:1 to 15:1.

In a filing with Bursa Malaysia on Tuesday, HexTech said the proposed bonus issue will now entail the issuance of 1.93 billion bonus shares on the basis of 15 bonus shares for every one existing HexTech share held at an entitlement date to be determined. Previously, it had proposed a ratio of 30 bonus shares for every one existing HexTech share held.

Fractional entitlements of the bonus shares arising from the proposed corporate exercise will be disregarded.

For illustration purposes, based on HexTech’s five-day volume-weighted average price as at Nov 23, 2023 of RM23.2096, the theoretical ex-bonus share prices of HexTech shares would be RM1.4506. HexTech shares closed down 20 sen or 0.85% at RM23.30 on Tuesday, giving it a market capitalisation of RM3 billion. Its share price has risen 17.4% so far this year.

As at Nov 23, 2023, HexTech’s issued share capital stood at RM72.4 million comprising 128.65 million shares. Upon completion of the proposed bonus issue, HexTech’s issued share capital would comprise 2.06 billion shares.

Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the first quarter of 2024.

In a separate filing, HexTech announced that it slipped into the red in its second financial quarter ended Sept 30, 2023 (2QFY2024), posting a net loss of RM1.2 million compared with a net profit of RM4.33 million a year earlier. It posted a loss per share of 0.9 sen for 2QFY2024 compared with an earnings per share of 3.4 sen for 2QFY2023.

This was despite higher revenue achieved in 2QFY2024 of RM57.66 million, up 71% from RM33.68 million in 2QFY2023, on higher sales of building materials.

HexTech attributed the quarterly loss to the loss of rental income subsequent to the expiry of a tenancy agreement, expenses incurred for the newly launched financial technology application, MoneyX, in October 2023, and absence of a one-off disposal gain of a quoted investment of RM3.7 million in 2QFY2023.

For the cumulative six months ended Sept 30, 2023 (1HFY2024), HexTech posted a net loss of RM1.95 million compared with a net profit of RM4.62 million a year earlier, while revenue grew 63% to RM101.5 million for the period under review from RM62.21 million in 1HFY2023.

HexTech said it will be undertaking a series of marketing and promotional activities for MoneyX over the next few weeks prior to its official launch in January 2024.

"We are also collaborating with various industry key players for long-term partnerships in order to provide a wider range of financial products and services for the convenience of our MoneyX users, as well as to diversify the revenue sources of the application. The group will also continue to develop the existing businesses so as to improve their contribution to the group's business performance," it added.

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