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.

The stock opened half a sen lower at seven sen, down 6.67 per cent from Friday's close of 7.5 sen. It remained the most actively traded counter on Bursa Malaysia.

At 9.29am, Zetrix AI had fallen further to 6.5 sen, down one sen or 13.33 per cent, with 57.04 million shares changing hands. The stock briefly touched 7.5 sen before retreating.

At 6.5 sen apiece, the company had a market capitalisation of RM525.11 million.

Zetrix AI announced on Friday night that no resolution had been reached at a sukukholders' meeting convened to discuss a proposed arrangement to address the covenant breach.

The company said another meeting would be arranged, although no date had been fixed.

The discussions followed the expiry of the Oct 22 deadline to remedy the breach, which arose after forced share sales by banks reduced managing director Wong Thean Soon's combined direct and indirect stake to 1.895 per cent as at Oct 15.

Under the terms of its Sukuk Wakalah programme, Wong is required to remain the company's single largest shareholder.

Without a waiver or an acceptable resolution, the breach could trigger a dissolution event.

Zetrix AI has RM2 billion in outstanding sukuk principal, in addition to RM164.5 million in future coupon payments.

Separately, the company announced on Friday that it had offered nearly 789 million share options to directors and employees under its employee share option scheme.

The options were offered at a 28 per cent discount to Friday's closing price of 7.5 sen, raising the prospect of further dilution for existing shareholders.