Zetrix AI loses key shareholder as Wong's stake falls to 1.84%

Highlights

Wong now holds just 1.84% of Zetrix AI's shares following a forced sale, leaving the company without a clear dominant shareholder.
Zetrix AI's market capitalisation fell to RM592.3 million, weighed down by its failure to remit RM314 million to the Road Transport Department and the risk of Practice Note 17 status.
The blockchain agreement between Zetrix AI and HeiTech Padu expired in April 2025 without renewal, adding to uncertainty over the business and capital-raising efforts.

This article was translated from the original. Read the original version by our correspondent here.

Ownership changes and corporate pressure

As reported by The Edge Malaysia, Wong's stake has fallen to an insignificant level after financial institutions forcibly sold shares he had pledged as collateral. The reason behind the large-scale sale of Zetrix AI shares and Wong's stake remains unclear.

The company's largest shareholder is now the Social Security Organisation, or Socso, with 216 million shares, equivalent to 2.72%, followed by the International Finance Corp, the World Bank's private sector arm, with 199.56 million shares, or 2.51%. This leaves Zetrix AI without a clear dominant shareholder to drive the company's direction.

Pressure on management has also mounted after former executive chairman Datuk Dr Norraesah Mohamad stepped down last Friday to take on a non-executive role, while another director, Datuk Seri Mohd Mokhtar Mohd Shariff, resigned earlier this month. These developments add to Wong's burden as the group faces a difficult period.

Operational risks and financial position

Zetrix AI's market capitalisation stood at RM592.3 million at Friday's close, far below its peak in 2018, before the 14th General Election. The decline comes as the company deals with the fallout from failing to remit RM314 million in collections from May to September this year to the Road Transport Department, which led to the suspension of the collection duties.

Zetrix AI and HeiTech Padu signed an agreement in April 2024 to explore the use of blockchain technology in the National Integrated Immigration System, or NIISe, project. However, the proposed collaboration did not materialise, the agreement expired in April 2025, and both parties agreed not to renew it.

The blockchain business is now seen as one of the key assets Zetrix AI has left, but questions remain over the segment's profitability and the company's ability to continue funding high capital expenditure. At the same time, efforts to secure new financing are proving increasingly difficult, while Wong is still grappling with a RM2 billion sukuk after a key condition—that he remain the single largest shareholder—was breached.

Listed in January 2007, Zetrix AI was once a Bursa Malaysia favourite, but is now at risk of slipping into the Practice Note 17 category, which is associated with cash-flow pressure.

In our earlier report on Zetrix AI's suspension as a collection agent for the JPJ, we explained how its failure to remit payments collected since May 2023 affected the company's core business cash flow and raised questions about its financial track record. We also highlighted its growing reliance on the blockchain and AI segments, as well as pressure on the RM2 billion sukuk as TS Wong's reduced stake affected covenant compliance and heightened risks to the group's financial position.

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