Magma clears RM47.71M debt in share swap to fund Wolo hotel push

What's the deal? Malaysia's Magma GroupDealroom has a profile for this one. Try Dealroom → Berhad has completed a RM47.71 million ($11.25 million) post-IPO equity deal, settling redeemable preference shares (RPS) by issuing 166.418 million new ordinary shares to Skyload Express Sdn. Bhd. The hospitality, property, and lifestyle group listed the new shares on the Main Market of Bursa Malaysia Securities Berhad.

How it works: Magma settled 47.71 million outstanding RPS, valued at RM47.71 million, entirely through new shares priced at 29 sen each. The non-cash settlement lifts its issued share capital to RM360.7 million, spanning 1.93 billion ordinary shares.

Why now? Shareholders approved the plan at an extraordinary general meeting on June 30. The deal clears the RPS obligation without touching cash and removes future dividend payments tied to the shares, which carried a fixed 4% annual rate until fully redeemed.

What's the endgame? The freed-up flexibility supports Magma's growth plans, including the Wolo Hotel & Residences and Wolo Mont Kiara KL developments. Group managing director and chief executive officer Datuk Seri Thomas Liang Chee Fong called the settlement "an important step in strengthening Magma's capital structure."

Liang said the move lets the group "settle existing obligations through a prudent non-cash mechanism, while maintaining financial flexibility to support the next phase of growth."

The signal: The quick re-raise shows Magma leaning on equity rather than cash to tidy its balance sheet, a common lever for smaller listed firms preserving liquidity for expansion. For shareholders, it trades near-term dilution for a cleaner capital structure ahead of the group's property push.

Read more: Utusan Malaysia

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