Ireka to be delisted on March 10

KUALA LUMPUR (March 6): Ireka Corp Bhd (KL:IREKA) is set to be delisted from the Main Market of Bursa Malaysia on March 10.

This comes after Bursa Securities dismissed its appeal for more time to submit its regularisation plan, according to a bourse filing on Thursday.

Ireka’s extension bid was dismissed in September last year, which also resulted in its shares being suspended from Oct 3. The bourse regulator had previously granted the company five separate extensions.

Its subsequent appeal was filed on Oct 2, the deadline to avoid being delisted on Oct 7.

With the appeal also being dismissed, the construction firm is set to be removed from the bourse. It has been listed since July 1993.

Ireka fell into Practice Note 17 (PN17) status in March 2022, after Bursa Securities rejected its bid for an extension of the Covid-19 relief period, as its shareholders’ equity had fallen below 50% of its issued capital.

Ireka has largely been loss-making since the financial year ended March 31, 2019 (FY2019).

It changed its financial year-end to end-June in 2022 and snapped a five-year streak in the red with a net profit of RM67.24 million for the financial year ended June 30, 2023 (FY2023).

It fell back to the red for FY2024 and FY2025, with net losses of RM59.56 million and RM17.54 million respectively.

Ireka also faced a notable setback in July last year.

Its RM1.07 billion subcontract for Phase 1B of the Pan Borneo Highway project in Sabah was terminated following funding issues and the main contractor’s withdrawal.

Ireka disputes the termination, arguing that some works have been completed and no payment terms had been finalised.

Shares in Ireka last traded on Oct 2, when it closed at one sen, valuing the company at RM2.28 million.

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