Zetrix AI shares slide as investors digest failed sukuk talks, ESOS plan
KUALA LUMPUR: Shares of Zetrix AI Bhd fell in early trading today, reversing Friday's 50 per cent rebound after the company failed to reach an agreement with its sukukholders over a covenant breach involving its RM2 billion sukuk programme.
Shares of Zetrix AI Bhd declined in early trading on Tuesday, reversing Friday's 50% rebound. The stock opened at seven sen, down 6.67% from Friday's close of 7.5 sen. It had the highest trading volume on Bursa Malaysia. By 9:29 am, Zetrix AI had dropped to six and a half sen, a 13.33% decrease, with 57.04 million shares traded.
The stock's market capitalization was at RM525.11 million. Zetrix AI announced on Friday that no resolution was reached during a meeting with sukukholders to address a covenant breach. The company stated another meeting would be scheduled, though no date was set. The discussions followed the expiration of the October 22 deadline to resolve the breach, which occurred after forced share sales by banks reduced managing director Wong Thean Soon's combined ownership to 1.895% as of October 15.
Wong is required to remain the company's largest shareholder under the Sukuk Wakalah programme. Without a waiver or resolution, the breach could lead to a dissolution event. Zetrix AI has RM2 billion in outstanding sukuk principal and RM164.5 million in future coupon payments. The company also announced on Friday that it had offered nearly 789 million share options to its directors and employees under its employee share option scheme, at a 28% discount to Friday's closing price of 7.5 sen, which could result in further dilution for existing shareholders.
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