SCHEDULE: Founder Group Ltd: Lee Seng Chi Boosts Stake

Lee Seng Chi reports beneficial ownership of 6.24% in Founder Group Ltd's Class A shares following a share grant and reverse stock split.

Summary

• Lee Seng Chi, a reporting person, has updated their beneficial ownership in Founder Group Ltd (FGL).
• The filing details ownership of 26,080 Class A shares and 51,949 Class B shares.
• Class B shares are convertible to Class A shares on a one-for-one basis.
• Class B shares carry twenty votes per share, while Class A shares have one vote per share.
• The reporting person's beneficial ownership is calculated on an as-converted basis, assuming all Class B shares are converted to Class A shares.
• This results in a total of 1,731,736 shares on an as-converted basis.
• The reporting person's beneficial ownership represents 6.24% of the class.
• This update follows a 100-for-1 reverse share split implemented on February 10, 2026, and a grant of 30,000 Class B shares on June 11, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily reporting changes in beneficial ownership and share structure, with no significant financial performance indicators or strategic shifts detailed.

Positives

• Lee Seng Chi has increased their beneficial ownership in Founder Group Ltd.
• The grant of 30,000 Class B shares on June 11, 2026, was for successful procurement of contracts related to large-scale solar photovoltaic plants.
• The reporting person's ownership percentage is calculated based on an as-converted basis, reflecting potential voting power.
• The company has implemented a reverse share split, which can sometimes be a precursor to uplisting or other strategic moves.

Negatives

• The filing does not explicitly state the current market value of the shares held.
• The details of the 'successful procurement of contracts' are not elaborated upon.
• The reverse stock split, while potentially strategic, can sometimes be perceived negatively by the market if not accompanied by strong performance.

Risks

• The voting power difference between Class A and Class B shares could lead to control issues if not managed carefully.
• The reliance on contract procurement for bonus shares suggests potential volatility in compensation tied to business development success.
• The implications of the reverse stock split on future share price performance are not detailed.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from the company. It primarily reports on beneficial ownership changes.

Management Comments

• Class B Shares are convertible at any time by the holder thereof into Class A Shares on a one-for-one basis.
• Each holder of Class A Shares is entitled to one vote per share and each holder of Class B Shares is entitled to twenty votes per share on all matters submitted to holders for vote.
• The percentage of the Reporting Person's beneficial ownership in class are based on the assumption that all Class B Shares are converted into Class A Shares.
• On June 11, 2026, the Reporting Person received grant of 30,000 Class B shares by the Issuer as bonus payments for successful procurement of contracts relating to engineering, procurement, construction and commissioning of multiple large scale solar photovoltaic plant in Malaysia.

Industry Context

StockSavvy.ai notes that the mention of 'successful procurement of contracts relating to engineering, procurement, construction and commissioning of multiple large scale solar photovoltaic plant in Malaysia' indicates Founder Group Ltd's involvement in the renewable energy sector, specifically solar power projects in Malaysia. This aligns with global trends towards renewable energy adoption.

Corporate Governance

Related Party Transactions

• Grant of 30,000 Class B shares to Lee Seng Chi as bonus payments for procurement of contracts.

Stakeholder Impact

• Shareholders: The reverse stock split may impact share price perception and liquidity. The concentration of voting power with Class B shareholders could affect minority shareholder influence.
• Management/Employees: The bonus share grant to Lee Seng Chi for contract procurement highlights a performance-based incentive structure.
• Creditors: No direct impact mentioned in the filing.

Next Steps

• The reporting person may continue to acquire or dispose of shares in Founder Group Ltd.
• Further updates to beneficial ownership will be reported via subsequent Schedule 13D filings if thresholds are met.

Key Dates

Keywords

Founder Group Ltd, Schedule 13D, Lee Seng Chi, Beneficial Ownership, Class A Shares, Class B Shares, Reverse Share Split, Solar Photovoltaic