KUCHING: Reneuco Bhd’s (formerly KPower Bhd) 95 per cent-owned subsidiary PKNP Reneuco Suria Sdn Bhd (PRSSB) faces winding up.
PRSSB had been notified on May 7, 2025 of the appointment of receivers and managers from KPMG Corporate Restructuring PLT by Bank Kerjasama Rakyat Malaysia (BKRM). Lok Peng Chuan and Jasmin Begum Jaafar have been appointed as receivers and managers, jointly and/or severally, over all charged assets of PRSSB, Reneuco said in a filing with Bursa Malaysia.
PRSSB’s total assets amounted to RM127.08 million, representing 40.65 per cent of Reneuco’s total assets of RM312.59 million. As at September 30, 2023, PRSSB’s pre-tax loss was RM0.23 million or accounting for 0.21 per cent of Reneuco’s total pre-tax loss of RM107.16 million. PRSSB’s net book value was negative RM0.74 million.
“At this moment, the appointment of receivers and managers is not expected to have any material financial and operation impact towards the company and/or PRSSB. The group would give its full cooperation to the appointed receivers and managers on PRSSB’s records and operations moving forward,” said Reneuco, a PN17 company.
Reneuco said Bursa Securities Malaysia Bhd (Bursa Securities) had in its letter dated June 3, 2025 approved the company’s listing and quotation of up to 114,247,700 new shares to be issued under a proposed private placement, Bursa Securities had earlier granted the company an extension of time up to August 7, 2025 to submit its regularisation plan to the relevant authorities for approval.
However, Reneuco said the proposed private placement does not form part of the regularisation plan to be formulated by the company pursuant to its obligations under PN17 of the listing requirements.
The placement shares are to be placed to independent third-party investor(s) to be identified later. The exercise may be implemented in one or multiple tranches within six months from the date of approval of Bursa Securities.
The placement shares will be issued based on a discount of not more than 10 per cent to the five-day volume weighted average price (VWAP) of Reneuco shares up to and including the last trading day immediately preceding the price-fixing date.
Based on an illustrative issue price of RM0.04 per placement share, the issue price of the placement shares would represent a discount of approximately 7.62 per cent to the five-day VWAP of Reneuco shares of RM0.0433.Reneuco shares closed at RM0.03 on June 25.
Based on RM0.04 per placement share, the exercise is expected to raise up to RM4.57 million, of which RM4.45 million will be utilised for working capital within 12 months, said Reneuco. Of the amount, half or RM2.225 million will be used to pay the group’s creditors.
“Following the group’s current status as a PN17 issuer, the group’s funding capabilities has been impeded, whereby its financiers (i.e banks) have suspended the further drawdown of financing by the group. Based on the group’s unaudited financial statements as at December 31, 2024, the group’s cash and bank balances amounted to RM10.03 million (out of which RM9.22 million was pledged as security) and the group’s current liabilities has exceeded its current assets by RM14.39 million,” said the company.
Reneuco group has four business segments: construction-related services, logistics, property development and investment as well as healthcare. The logistics segment which comprises transportation and forwarding services was the main revenue earner, generating 86.53 per cent of the group’s total revenue for the 15-month period to December 31, 2024.
In the latest quarter to March 31, 2025, Reneuco suffered group net loss of RM66.7 million on revenue of RM3.69 million.
