Padini's proposed share buy-back comes amid nearly 50pct share price slump

KUALA LUMPUR — Padini Holdings Bhd is requesting shareholder approval to repurchase up to 10% of its issued shares in an effort to bolster its capital structure and shareholder value, following a 49.5% drop in its stock price from its February peak. The share price currently stands at RM1.02, down significantly from its highest closing price of RM2.02 on February 11.

Acquiring the maximum 98.69 million shares would cost Padini an estimated RM100.66 million, which is about 30.5% of its retained profits as of June 30, 2026. The company has not yet decided on the exact number of shares to buyback, the timing, or the amount of money to be spent. The mandate would allow the directors to repurchase shares when they believe the market price does not accurately reflect the underlying value of the company, considering its financial position and current market conditions.

Padini's shares have faced pressure since February, intensifying in April when several bank accounts were frozen by the Malaysian Anti-Corruption Commission amid an investigation. The stock suffered further in August after the company reported an unexpected quarterly loss, its first in five years, due to weaker sales and higher operating costs.

Padini plans to fund the buyback through internally generated funds, external borrowings, or a combination of both, depending on market conditions and available financial resources. The company may cancel the repurchased shares, keep them as treasury shares, sell them on Bursa Malaysia, or distribute them as dividends. The mandate requires approval at the annual general meeting on November 25, and Padini has not repurchased any shares in the past year.