Velesto said the proposed capital reduction will not result in any adjustment to the group’s share price.
PETALING JAYA: Velesto Energy Bhd
has announced a RM1.2bil capital reduction exercise to offset its accumulated losses.
Once completed, the capital reduction will leave the oil and gas group’s retained earnings at about RM1.33bil and RM1.06bil at the company and group level, respectively, based on unaudited financial results as of Dec 31, 2024.
In a filing with Bursa Malaysia, Velesto said the proposed capital reduction will not result in any adjustment to the group’s share price and will not involve any cash outflow from the company.
This is a non-dilutive exercise that does not affect shareholders’ equity, ownership structure or the net asset value of the group. The company had previously undertaken a similar capital reduction exercise of RM2.2bil in 2020.
