Magma Group Bhd has finalized the redemption of its redeemable non-convertible preference shares (RPS) through a share set-off mechanism.
The transaction involved the listing of 166.42 million new ordinary shares on the Main Market of Bursa Malaysia, effectively settling the RM47.71 million liability without a cash outflow.
The move allows the developer to clear the preference share obligation while preserving liquidity.
By issuing new equity to retire the RPS, Magma avoids the immediate cash drain associated with a traditional cash redemption, though it does introduce dilution for existing ordinary shareholders.
The new shares have been listed and are now tradable on the exchange.
This capital structure adjustment follows a broader trend of Malaysian corporates managing debt and hybrid instruments amid shifting financing conditions.