One in five votes against Frontken's share mandate
KUALA LUMPUR: More than one in five of Frontken Corp Bhd's voting shares were cast against granting the board authority to issue new shares at its annual general meeting (AGM) on Thursday, reflecting unease over potential equity dilution.
In a filing with Bursa Malaysia, the company said it received 78.8 per cent support for the mandate, which allows the board to issue up to 10 per cent of its issued capital without prior shareholder approval until the next AGM.
The 21.2 per cent dissent, amounting to over 233.9 million shares, was the highest level of opposition among the six resolutions tabled.
According to an earlier AGM notice, Frontken viewed the mandate as a tool to respond swiftly to funding needs for working capital or potential investments. However, it clarified that no share issuance was currently planned.
"At this juncture, there is no decision to issue any additional share. If there should be a decision to issue any new share after the general mandate is sought, the company will make an announcement," the notice stated.
The proposal to renew the company's authority to buy back up to 10 per cent of its own shares also passed, with 86.7 per cent voting in favour and 13.3 per cent against, a narrower margin compared to other resolutions.
The RM50 million buy-back mandate will be funded through retained profits or borrowings. As of end-2024, Frontken had RM33.7 million in retained earnings, according to its share buy-back statement.
The company repurchased just over 1.1 million shares from the open market in March, bringing its total treasury shares to over 8.3 million. The buy-back was positioned as a tool for managing capital, stabilising the share price and rewarding shareholders.
Meanwhile, two other resolutions saw modest but notable pushback, with nearly five per cent voting against both the proposed directors' fees and benefits of up to RM600,000, and the re-election of Ng Chee Whye as a board member.
The reappointment of the company's auditors was backed by 99.1 per cent of voting shares, while the re-election of Koh Huey Min saw similarly strong support, with nearly 99 per cent in favour.
Frontken specialises in surface engineering and precision cleaning for the semiconductor, oil and gas, power, petrochemical and marine industries.
As at 3.19pm, Frontken's shares rose 0.77 per cent or three sen to RM3.95, with 882,800 units traded. This valued the company at RM6.03 billion. Year-to-date, the stock has fallen 10.86 per cent.
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