Last updated on August 23, 2025
SHAH ALAM, 6 August 2025 – Pharmaniaga Berhad (Pharmaniaga or the Group) has achieved the final milestone of its Regularisation Plan (RP) with the completion of a Capital Reduction exercise, marking full compliance with Bursa Malaysia’s Main Market Listing Requirements. This paves the way for the Group to exit Practice Note 17 (PN17) status by the first quarter of 2026 at the latest.
The Capital Reduction, involving the cancellation of RM520 million in issued share capital, was finalised upon confirmation from the Registrar of Companies that all statutory obligations had been met. Following this exercise, Pharmaniaga’s issued share capital stands at RM249,615,449.30, comprising 6,557,025,388 shares.
This follows the completion of two other key RP milestones — the Rights Issue and Private Placement — on 31 July 2025. The fully subscribed renounceable Rights Issue of 3,458,950,862 shares, oversubscribed by 26.14%, reflected strong investor confidence. The Private Placement brought in 19 new investors, involving 1,656,845,000 shares valued at RM223.7 million.
Of the total proceeds raised, 43.9% will be used to reduce borrowings, delivering an estimated RM12.5 million in annual interest savings and strengthening the Group’s gearing ratio. Another 39.0% will fund business expansion, including the acquisition of four new warehouses nationwide and investments in human insulin, vaccines, and other generic medicines. The remainder will support working capital and implementation costs.
Pharmaniaga Managing Director Dato’ Zulkifli Jafar said, “The swift completion of our Regularisation Plan positions Pharmaniaga among the fastest PN17 companies to meet Bursa Malaysia’s requirements. This is a testament to the commitment of our Board, Management, employees, shareholders, financiers, and stakeholders. Our disciplined execution and transparent engagement have been key to restoring our financial health.
“With sustained positive results over recent quarters, we are firmly on track to exit PN17 by Q1 2026,” he added.
Looking ahead, Dato’ Zulkifli said the Group will stay focused on its 2025 growth targets, while strengthening its financial footing, expanding its core businesses, and delivering long-term value to stakeholders.
Pharmaniaga’s Recovery Journey
Pharmaniaga entered PN17 status on 27 February 2023, after shareholders’ equity fell below RM40 million and 25% of issued share capital as of 31 December 2022, largely due to a RM552.3 million impairment on slow-moving COVID-19 vaccine stocks.
The Group responded with a structured recovery strategy, submitting its Requisite Announcement on 29 November 2023, followed by its Regularisation Plan on 23 February 2024 and a revised version on 6 November 2024. The RP set out measures to restore equity, reduce accumulated losses, and strengthen resilience.
Bursa Malaysia approved the RP on 29 November 2024. A proposed variation was later announced on 4 February 2025 and approved on 17 February 2025. Shareholders endorsed the revised plan at the EGM on 20 March 2025, signalling strong support.
The Rights Issue and Private Placement were completed on 31 July 2025, with the Capital Reduction concluded today.
