Ho Wah Genting Bhd has proposed a capital reduction to write off the group’s RM261.2mil accumulated losses and, upon completion of the exercise, plans to sell new shares to raise fresh working capital.
The capital reduction plans involve cancelling 80 sen for every RM1 share issued to offset the losses.
The company’s current paid-up capital is RM275.78mil. Post-capital reduction, this will fall to RM55mil while its accumulated losses will be cut down to RM3.33mil.
After that, the company plans to offer one rights share plus free warrant for 20 sen each. The plan is expected to raise as much as RM27mil.
It also intends to offer employees new shares in the company.
