The 56-year-old businessman is Widad’s largest shareholder with a 0.06% direct stake and a 13.71% indirect stake via his private vehicle Widad Business Group Sdn Bhd (WBG).
He has pared down substantially his equity interest in the ACE Market-listed company this year, from the 75% stake he used to own in 2020.
He gained control of the company in 2018 when WBG undertook a reverse takeover of industrial labels manufacturer Ideal Jacobs (M) Corp Bhd, and changed its name to Widad Group.
To say it has been a tough year for Widad would be a gross understatement as its shares have been battered since the start of the year. It was one of about 20 small-cap stocks hit by a deluge of selling in January, from which its share price has yet to recover.
It was at 5.5 sen per share at the time of writing yesterday, down 89% year-to-date, valuing it at RM170 million from nearly RM1.5 billion in early January when it hovered around the 49 sen level.
The lossmaking outfit was in the media spotlight recently after the national audit department revealed Widad had entered into a put-and-call option agreement with the Human Resources Development Corp (HRD Corp) in 2020, which resulted in substantial investment losses for the latter.
Rebuilding investors’ confidence
Things came to a head last month when disgruntled shareholders rejected the re-election of managing director Rizal Jaafar, WBG’s representative, at its annual general meeting, leaving a void in its senior management hierarchy.
This prompted Ikmal to step in to fill the breach and rebuild investor confidence in the company, said Abas A Jalil, CEO of ACGL Group Sdn Bhd, WBG’s corporate adviser. ACGL is an advisory firm under Amanah Capital Group Ltd.
“Now is the right time for him (Ikmal) to come into Widad Group, to restructure the business and rebuild the listed entity.
he said, adding the tycoon previously did not have an executive role in the company.He will work closely with the existing management team and at the same time, have good working relationships with all the board members,
He said with Ikmal’s involvement in Widad, shareholders
in terms of operations, prudent financial management, and possible asset or new business injections into the group.can expect enhancements
He also touched on why he was appointed as executive deputy chairman rather than as chairman. The post has been vacant since Feizal Mustapha stepped down in November 2020.
he added.Perhaps some heavyweight will join Widad as chairman soon. This might be interesting for the shareholders and market,
Abas said with the company’s founder now taking on an active executive role, the market should expect a turnaround in Widad’s financial performance.
An investment holding company, Widad’s subsidiaries are principally involved in construction, integrated facilities management services, and concession business.
The group posted its second year of losses for the financial year ended Dec 31, 2023 (FY2023), widening to RM16.5 million from RM6.1 million the previous year.
On a positive note, revenue rose 64.3% to RM263.6 million in FY2023 from RM160.4 million in FY2022, with the improved performance solely contributed by the construction segment.
However, it was weighed down by rising project costs brought on by higher raw material prices, exchange rate fluctuation, and increased borrowing cost.
Nevertheless, with an order book valued at RM1.66 billion, the group is optimistic of delivering positive results in 2024 and beyond, according to its latest annual report.
Ikmal, who served in the army before reinventing himself as a businessman, once made an audacious RM5.3 billion takeover bid for highway operator PLUS Malaysia Bhd.
He is not one to shrink from challenges, but reviving Widad’s fortunes may well turn out to be his toughest test yet. - FMT
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