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

KUALA LUMPUR: Padini Holdings Bhd is seeking shareholders' approval to buy back up to 10 per cent of its issued shares after the fashion retailer's share price lost nearly half its value from its peak earlier this year.

The stock was trading at RM1.02 at press time, down 49.5 per cent from its highest closing price of RM2.02 on Feb 11.

At the current price, repurchasing the maximum 98.69 million shares would cost Padini an estimated RM100.66 million, equivalent to about 30.5 per cent of its retained profits of RM329.73 million as at June 30, 2026.

However, the company has yet to determine the number of shares to be repurchased, the timing or the amount to be spent.

In a Bursa Malaysia filing today, Padini said the proposed buy-back would give it greater flexibility to manage its capital structure and financial resources while enhancing shareholder value.

The mandate would allow the company to repurchase shares when its directors believe the market price does not reflect their underlying value, taking into account its financial position and prevailing market conditions.

Padini's shares have been under pressure since February, with selling intensifying in April after the Malaysian Anti-Corruption Commission froze several of the group's bank accounts as part of an investigation involving external counterparties.

Although the accounts were unfrozen in July, the stock came under renewed pressure in August after Padini reported an unexpected quarterly loss.

The fashion retailer posted its first quarterly net loss in five years, weighed down by weaker sales and higher operating costs.

It recorded a net loss of RM9.64 million for the fourth quarter ended June 30, 2026, against a net profit of RM6.98 million a year earlier, while revenue fell 6.7 per cent to RM365.94 million from RM392.1 million.

Padini first announced its intention to seek the share buy-back mandate on Aug 27, when its shares were already trading substantially below their February high.

The stock subsequently fell to RM1 in September, its lowest level in nearly six years.

Padini said the buy-back could be funded through internally generated funds, external borrowings or both, with the number of shares repurchased depending on market conditions and available financial resources.

The company may cancel the repurchased shares, retain them as treasury shares, resell them on Bursa Malaysia or distribute them as share dividends.

Padini has not repurchased any of its shares in the preceding 12 months and currently holds no treasury shares.

The proposed mandate is subject to shareholders' approval at its annual general meeting on Nov 25.