KUALA LUMPUR: Systech Bhd
has proposed a RM40mil reduction in its issued share capital to eliminate accumulated losses and strengthen its financial position, and plans to rename itself as WTS Capital Bhd.
In a filing with Bursa Malaysia, the digital transformation and automation provider said the capital reduction, to be undertaken under Section 117 of the Companies Act 2016, will generate a RM40mil credit.
“The proposed share capital reduction will enable the company and the group to rationalise their financial positions by eliminating their accumulated losses via cancellation of a portion of its issued share capital which is lost or unrepresented by available assets.
“This will allow the financial position of the company and the group to reflect more accurately the value of the underlying assets and strengthen their financial position,” Systech said.
Based on its unaudited financial statements as at March 31, 2026, the proposal is expected to turn the company's accumulated losses of RM37.5mil into retained earnings of RM2.34mil, after deducting estimated expenses.
Systech said the capital reduction "is expected to place the company and the group in a stronger financial position and may enhance their standing with stakeholders, including financiers, customers, suppliers and investors."
The exercise will not affect the number of shares in issue, shareholders' equity interests, the reference share price of the company's shares or involve any cash payment to shareholders.
Separately, Systech also plans to change its name to WTS Capital Bhd to better reflect its corporate identity and core business.
“The proposed change of name enables the company to better reflect its corporate identity and core business, in order to enhance the brand image of the company,” it said.
The proposals are subject to shareholders' approval at an upcoming general meeting.
The proposed name change will take effect upon the issuance of the Notice of Registration of New Name by the Companies Commission of Malaysia, while the share capital reduction is expected to be completed by the fourth quarter of 2026.
