This article first appeared in The Edge Malaysia Weekly on January 12, 2026 - January 18, 2026

DID Lady Luck smile on Datuk Seri Farhash Wafa Salvador Rizal Mubarak, who until recently was the largest shareholder of MMAG Holdings Bhd (KL:MMAG)? 

On Dec 31, 2025, Farhash managed to sell his 19.9% stake in MMAG at a hefty premium over the prevailing market price in direct off-market transactions. However, he still incurred an investment loss of RM97.48 million.

The block of 462 million shares, which had been pledged to Velocity Capital Partner Bhd (KL:VELOCITY), changed hands at 18.9 sen apiece, or RM87.3 million in total, compared with the current market price of about seven sen. 

Last Friday, MMAG announced that the block of shares was taken up by Future Star Sdn Bhd, a holding company. The filing with the Companies Commission of Malaysia (SSM) reveals that Future Star is wholly owned by 25-year-old Cheah Min Lly, who is based in Penang. Notably, these shares are also pledged to Velocity Capital.

Lady Luck may have smiled on Farhash not once but twice. He is believed to have bought the MMAG stake at a sharp discount in March last year.

MMAG’s filing with Bursa Malaysia shows that Farhash’s shares were purchased in a direct business transaction on March 26, 2025. While the transaction price was not revealed in the filing, Bloomberg data shows that 462 million shares were traded off-market in four tranches at 40 sen apiece on the same day, for a total of RM184.8 million.

The transaction price of 40 sen per share was a 65% discount to MMAG’s closing price of 66 sen that day. There were no filings with Bursa on any major equity divestments by MMAG at the time.

Farhash’s investment has prompted many to wonder who was kind enough to part with their MMAG shares at such a big discount, and who was so generous as to buy the shares from Farhash at a huge premium nine months later.

Farhash, a former political secretary to Prime Minister Datuk Seri Anwar Ibrahim, has found an exit, but NexG Bhd (KL:NEXG) and Velocity Capital remain exposed to MMAG. NexG’s mark-to-market investment loss is estimated at RM72.6 million while Velocity Capital’s is RM49.5 million.

The shareholders of NexG and Velocity Capital are probably wishing for the deal that Farhash struck to offload their investments in MMAG, whose share price fell off a cliff in November last year.

Coincidentally, the two companies bought into MMAG in the same month and at the same price as Farhash.

NexG and Velocity Capital bought their stakes in MMAG — 175 million shares and 150 million shares respectively — from Chan Swee Ying, wife of businessman Chin Boon Long. NexG later mopped up an additional 45 million shares on the market, lifting its equity interest to 225 million shares (7.58%).

They incurred heavy losses as a result of MMAG’s share price collapse in early November last year. On Nov 3, the stock plunged nearly 60% in a single day, falling from 43 sen to 18.5 sen, after dropping 17% the day before. In response to Bursa Malaysia Securities’ unusual market activity query, the company said it was unaware of any reasons behind the sell-off, further rattling investor confidence and driving the counter down 62% to about seven sen.

Velocity Capital’s 150 million MMAG shares were booked as “other investment” at RM101.25 million on its balance sheet as at Sept 30, 2025. The investment is worth only RM10.5 million now.

Other investments and financing receivables of RM275.76 million accounted for 76% of Velocity Capital’s total assets. As at end-September, the money lender held RM50.66 million in cash.

Notably, Velocity Capital’s financing receivables included Farhash’s MMAG shares that had been pledged to it. According to the company, its financing receivables are mainly secured against properties and quoted shares on Bursa and subject to annual interest rates of 4% to 12%.

At NexG, its cash and cash equivalents shrunk to RM84.69 million as at end-September 2025 from RM133.49 million a year earlier. The company has invested nearly RM187 million to acquire stakes in three companies — 32.61% of NEXG Bina Bhd (KL:NEXGBINA), 51% of Innov8tif Holdings Sdn Bhd and 7.58% of MMAG.

In 2024, MMAG embarked on a strategic restructuring, streamlining operations into three pillars: supply chain management, courier and logistics, and aviation. Much focus was placed on its aviation arm, MMAG Aviation Sdn Bhd, which offers cargo airline services, ground handling and transshipment operations.

To strengthen its capital base, MMAG raised RM145.34 million via a six-for-one rights issue at 10 sen per share in January 2024 and RM92.09 million through warrant conversions between January and September at 15 sen apiece that year. These measures addressed the company’s Guidance Note 3 (GN3) status, triggered when its shareholders’ equity fell below 50% of its issued share capital in FY2023.

MMAG was out of GN3, a designation typically applied to financially distressed ACE Marketlisted companies, in November 2024.

MMAG was known as Ingenuity Solutions Bhd before it assumed the name Ingenuity Consolidated Bhd. The company’s core business previously revolved around information and communications technology solutions.

Chan had long been a central figure in MMAG. She and her spouse Chin held substantial stakes in the company from time to time. They exited in 2015, but Chan re-emerged in November 2017, coinciding with MMAG’s rebranding and pivot into logistics. Back then, she acquired an 18.88% stake, or 57.34 million shares, via a direct business transaction.

Fast forward to 2024, Chan subscribed for 399.999 million rights shares at 10 sen each when MMAG made a cash call. That bumped up her shareholding to 432.36 million shares, or a 25.5% stake.

This means Chan’s entry price was about 10 sen per share before the blocks crossed to NexG and Velocity Capital at 40 sen apiece. She currently has a 4.648% stake in MMAG.

What is next for MMAG after the share price meltdown and emergence of a new substantial shareholder? Penny stock investors are likely to watch the counter with interest.  

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