KUALA LUMPUR (Dec 11): AE Multi Holdings Bhd (KL:AEM) has proposed a share capital reduction to wipe out up to RM156 million of the company’s accumulated losses.

“The proposed share capital reduction will enhance the company’s ability to declare and pay dividends out of the retained earnings in the future and provide a better financial platform for the group’s future growth moving forward,” AEM said in a bourse filing on Friday.

As of Dec 2, AEM has an issued share capital of RM167.25 million, consisting of 216.35 million ordinary shares and 32.45 million units of options that are eligible for its employees’ share option scheme. These options are exercisable into an equivalent number of new shares at an exercise price of 7.5 sen per share.

AEM, which manufactures printed circuit board, dedicated home appliances, remote controls and power supply units, has been in the red for the past nine financial years.

Its accumulated losses stood at RM123.48 million at the end of Sept 30, 2024. After the proposed share capital reduction exercise, the retained earnings of AEM will turn into net earnings of RM32.41 million.

In FY2024, AEM reported a net loss of RM20.51 million compared to a net loss of RM21.37 million in FY2023, with revenue steady at about RM110 million.

M&A Securities is the principal adviser for the share capital reduction, which is expected to be completed in the second quarter of 2025.

Shares of AEM closed unchanged at eight sen on Wednesday, giving it a market capitalisation of RM17.31 million.