v3.26.3
Redeemable Convertible Preference Shares
 12 Months Ended
Dec. 31, 2025
Redeemable Convertible Preference Shares [Abstract]  
Redeemable convertible preference shares

12. Redeemable convertible preference shares

 

   As of
December 31,
2024		   As of
December 31,
2025		 
   MYR   MYR   USD 
- Non-current   6,213,040    
–
    
–
 
- Current   3,377,330    6,583,486    1,623,147 
    9,590,370    6,583,486    1,623,147 

 

The Group’s preference shares activities for the year ended December 31, 2023, 2024 and 2025 are summarized below:

 

   Agroz Inc. RCPS   Agroz Group RCPS     
   (note (b))   (note (a))     
   No. of
shares		   Amount   No. of
shares		   Amount   Total
Amount		 
As of January 1, 2023   
–
    
–
    2,500,000    2,500,000    2,500,000 
Issuance   604,870    6,942,953    500,000    500,000    7,442,953 
Redemption   
–
    
–
    (3,000,000)   (3,000,000)   (3,000,000)
Issuance   
–
    (459,417)   
–
    
–
    (459,417)
As of December 31, 2023 and January 1, 2024   604,870    6,483,536    
–
    
–
    6,483,536 
Issuance   714,979    7,989,890    
–
    
–
    7,989,890 
Conversion   (419,929)   (4,389,989)   
–
    
–
    (4,389,989)
Equity component   
–
    (321,679)   
–
    
–
    (321,679)
Foreign exchange loss   
–
    (171,388)   
–
    
–
    (171,388)
As of December 31, 2024 and January 1, 2025   899,920    9,590,370    
–
    
–
    9,590,370 
Redemption   (40,000)   (378,855)   
–
    
–
    (378,855)
Conversion   (180,000)   (1,704,846)   
–
    
–
    (1,704,846)
Modification   
–
    (37,092)        
 
    (37,092)
Foreign exchange loss   
–
    (886,091)   
–
    
–
    (886,091)
As of December 31, 2025   679,920    6,583,486    
–
    
–
    6,583,486 
As of December 31, 2025 (USD)   679,920    1,623,147    
–
    
–
    1,623,147 

(a) Agroz Group RCPS (“AG RCPS”)

 

Between April 12, 2021 and April 14, 2023, Agroz Group, a wholly-owned subsidiary of the Company, had issued 7 tranches of mandatorily redeemable convertible preference shares (“AG RCPS”), totally 3,000,000 shares, for cash considerations of MYR 3,000,000. Among them, 2,000,000 shares of MYR 2,000,000 and 500,000 shares of MYR 500,000 were issued during the years ended December 31, 2022 and 2023, respectively. There is no transaction during the year ended December 31, 2024.

 

All tranches of the AG RCPS are with identical agreement terms, as presented below:

 

Subscription Price

 

Each AG RCPS value is MYR 1.

 

Tenure and Maturity Date

 

The tenure is up to 60 months from the date of first issuance. The maturity date shall fall on the last day of the period of 5 years from the date of first issuance.

 

Dividend

 

The subscriber is entitled to:

 

(a)a fixed non-accumulated dividend of 10.0% per annum, of which Agroz Group has made a promise on declaration; or

 

(b)Equivalent value of services or products offered by Agroz Group; or

 

(c)Combination of (a) and (b) based on mutual agreement.

 

Redemption

 

The subscriber shall have the sole and absolute discretion to require Agroz Group to redeem the AG RCPS on maturity date by repayment of the subscription price paid for the AG RCPS together with dividends committed to the subscribers.

 

On December 1, 2023 (“Redemption Date”), the Group decided to redeem all AG RCPS and agreed with the subscribers of AG RCPS to settle the redemption along with the related unpaid dividends by issuing 336,366 shares of Agroz Inc. RCPS (“AI RCPS”) which had a fair value MYR 3,882,500 (USD 840,915). The fair value of AI RCPS was based on a value of USD 2.50 a share which was the price this class of shares were sold to unrelated parties. On the Redemption Date, the net book value of AG RCPS along with the related unpaid dividends was MYR 3,177,600. The difference between the fair value of the AI RCPS and the net book value of AG RCPS of MYR 704,900 was recognized as a finance cost for the year ended December 31, 2023. On December 22, 2023, all AG RCPS was settled.

(b) Agroz Inc. RCPS (“AI RCPS”)

 

Between August 12, 2023 and December 31, 2023, the Company sold 268,504 shares AI RCPS at USD 2.50 a share for USD 671,260 or MYR 3,109,483.

 

Taking into consideration the conversion described above, as of December 31, 2023, the Company had issued a total of 604,870 AI RCPS with a fair value of MYR 6,942,953.

 

To expand the capital structure of Agroz Inc., the management had successfully issued 714,979 units of AI RCPS at USD 2.50 per share for MYR 7,989,890 during the year ended December 31, 2024. Certain shareholders have opted to convert 419,929 units of AI RCPS to 419,929 units of ordinary shares which amounted to MYR 4,389,989.

 

On December 3, 2025, a shareholder fully redeemed 40,000 units of AI RCPS at USD 2.50 per share for a total redemption amount of USD 100,000 or MYR 405,700. Certain shareholders have opted to convert 180,000 units of AI RCPS to 180,000 units of ordinary shares which amounted to MYR 1,825,650 (USD 450,111) during the year ended December 31, 2025. During the year ended December 31, 2025, certain shareholders opted to extend the tenure of 103,637 units of AI RCPS for an additional year upon maturity.

 

On the issuance dates, the Group first determined the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of the equity instrument represented by the option to convert the instrument into ordinary shares is then determined by deducting the fair value of the financial liability from the fair value of the compound financial instrument as a whole.

 

The key valuation assumptions used to determine the fair value of a similar liability on initial recognition are as follows:

 

   December 22,
2023		   January 10,
2024		   March 20,
2024		   June 6,
2024		   September 18,
2024		   October 23,
2024		   December 21,
2025		 
   (date of
issuance)		   (date of
issuance)		   (date of
issuance)		   (date of
issuance)		   (date of
issuance)		   (date of
issuance)		   (date of
extension)		 
Credit spread   7.60%   7.84%   7.86%   7.22%   6.58%   5.63%   7.60%
Risk free rate   4.32%   4.38%   4.64%   4.74%   3.62%   4.07%   4.32%
Country risk premium   1.31%   1.31%   1.31%   1.31%   1.19%   1.19%   1.31%
Liquidity premium   0.68%   0.68%   0.68%   0.68%   0.68%   0.68%   0.68%
Credit rating   B to below CCC    B to below CCC    B to below CCC    B to below CCC    B to below CCC    B to below CCC    B to below CCC 

 

As of December 31, 2025, the net book value of the liability and equity components of AI RCPS amounted to MYR 6,583,486 (USD 1,623,147) and MYR 330,730 (USD 81,541), respectively. All AI RCPS are classified as current liabilities as holders possess redemption rights within 12 months.

 

During FY2025, 40,000 units of AI RCPS were fully redeemed for USD 100,000 (MYR 405,700), 180,000 units were converted to ordinary shares (MYR 1,85,650), and 103,637 units were extended for one additional year upon maturity.

 

As of December 31, 2024, the net book value of the liability and equity components of AI RCPS amounted to MYR 9,590,370 and MYR 478,379, respectively.

 

All transactions involving the issuance of AI RCPS were with identical agreement terms, as presented below:

 

Subscription Price

 

Each AI RCPS value is USD 2.50.

Tenure and Maturity Date

 

The tenure is 2 years from the subscription date. The maturity date shall fall on the second anniversary of the subscription date.

 

During the year ended December 31, 2025, certain shareholders opted to extend the tenure for an additional year.

 

Dividend

 

The AI RCPS shall carry preferential cumulative dividend of 10.0% per annum on the period during which the AI RCPS is outstanding by the subscriber.

 

Redemption

 

All AI RCPS outstanding on the maturity date or did not convert to common share shall be fully redeemed at the subscription price.