Mudajaya plans five-to-one share consolidation

• Mudajaya said the move is intended to reduce share price volatility, noting that its low trading price means even minor fluctuations can result in outsized percentage changes.

KUALA LUMPUR (Oct 16): Construction and property developer Mudajaya Group Bhd (KL:MUDAJYA) has proposed to consolidate every five shares held by its shareholders into one share.

In a bourse filing on Thursday, Mudajaya said the move is intended to reduce share price volatility, noting that its low trading price means even minor fluctuations can result in outsized percentage changes.

Based on its closing price of 10 sen on Oct 13, the group said the price could theoretically be adjusted to 50 sen post-consolidation. On completion of the exercise, Mudajaya’s share base will be reduced to 531.48 million shares from 2.657 billion shares as of Oct 13, for a share capital of RM788.94 million.

The group also has 531.47 million warrants, expiring on July 30, 2027, with an exercise price of 22 sen. Following the consolidation, the exercise price will be revised to RM1.10 per warrant.

UOB Kay Hian has been appointed to act as the principal adviser for the proposed share consolidation.

The proposal, subject to approval from Bursa Securities and Mudajaya's shareholders, is expected to be completed by the fourth quarter of 2025.

Mudajaya’s financial performance has been volatile, with two loss-making years in the past five years. For the first half ending June 30, 2025, the group's net loss narrowed to RM5.11 million from RM16.96 million a year earlier, while revenue fell sharply to RM111.14 million from RM204.42 million.

In July, the group announced plans to raise up to RM25.96 million via a private placement of 265.74 million new shares—equivalent to 10% of its enlarged share capital.

Proceeds will be used to repay part of its RM644.49 million bank borrowings as at June 24, focusing on RM239.67 million in term loans and revolving credit. The group expects the repayment to reduce annual interest costs by up to RM1.58 million.

As at Oct 13, Mudajaya had yet to place out any shares under the private placement. It has until Jan 27, 2026 to complete the exercise.

Mudajaya shares closed unchanged at 10 sen on Thursday, valuing the group at RM265.74 million. Year to date, the stock has declined 13%.

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