Zetrix AI’s managing director, TS Wong, sold 600,000 shares last Friday, cutting his ownership to 1.887%—a shift that intensifies worries about the company’s ability to meet a key sukuk covenant requirement by October 22. The RM2 billion sukuk demands Wong maintain the largest shareholding, but his stake has fallen from nearly 30% in late August after forced sales linked to margin calls on share-backed loans.
The transaction, valued at RM30,000 at five sen per share, was executed through Asia Internet Holdings Sdn Bhd. After the sale, Wong retained 43.18 million shares directly (0.547%) and 105.83 million indirectly (1.34%), leaving him far below the minimum needed to avoid early repayment obligations.
Zetrix AI’s shares plunged 9.09% on Monday, settling at five sen, their lowest point in 14 years, as trading volume spiked to 108 million shares. The decline has wiped out over 90% of the company’s market value, reducing it to RM394.9 million.
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Wong has insisted the sales were compulsory and suggested pursuing legal action over alleged price manipulation and collusion. On Monday, the company announced it would cancel its first interim dividend, 0.25 sen per share, to conserve cash amid rising costs.
A breach of the sukuk covenant could trigger early repayment of the RM2 billion principal plus RM164.5 million in future interest payments, totaling RM2.16 billion. If the issue remains unresolved, Zetrix AI intends to request a waiver from sukuk investors by the deadline.
