KUALA LUMPUR (Dec 21): Techna-X Bhd has proposed to undertake capital reduction to rationalise its balance sheet by reducing its accumulated losses.

The group intends to reduce its share capital to RM73.44 million from RM1.22 billion as of Dec 20, resulting in a credit of RM1.15 billion, which will be utilised to set off its accumulated losses of RM1.14 billion at the group level.

"The reduced issued share capital pursuant to the proposed capital reduction will also reflect more accurately the value of the underlying assets and the financial position of the company," said Techna-X in a stock exchange filing.

"Further, the elimination of the accumulated losses from the statement of financial position of the company would ease the company to declare dividends from its future available profits and provide a better financial platform for the company's future growth moving forward," it added.

Techna-X said the corporate exercise requires shareholders' approval via an extraordinary general meeting.

M&A Securities Sdn Bhd has been appointed as the principal adviser to the proposed capital reduction exercise, which is estimated to be completed in the second quarter next year.

Shares of Techna-X closed unchanged at three sen on Wednesday (Dec 21), giving it a market capitalisation of RM66.44 million.