Several high-speed wireless systems use Orthogonal Frequency Division Multiplexing (OFDM) due to its advantages. 5G has adopted OFDM and is expected to be considered beyond 5G (B5G). Meanwhile, OFDM has a high Peak-to-Average Power Ratio (PAPR) problem. Hybridization between two PAPR reduction techniques gains the two techniques’ advantages. Hybrid precoding-companding techniques are attractive as they require small computational complexity to achieve high PAPR reduction gain. Many precoding-companding techniques were introduced to increasing the PAPR reduction gain. However, reducing Bit Error Rate (BER) and out-of-band (OOB) radiation are more significant than increasing PAPR reduction gain. This paper proposes a new precoding-companding technique to better reduce the BER and OOB radiation than previous precoding-companding techniques. Results showed that the proposed technique outperforms all previous precoding-companding techniques in BER enhancement and OOB radiation reduction. The proposed technique reduces the Error Vector Magnitude (EVM) by 15 dB compared with 10 dB for the best previous technique. Additionally, the proposed technique increases high power amplifier efficiency (HPA) by 11.4%, while the best previous technique increased HPA efficiency by 9.8%. Moreover, our proposal achieves PAPR reduction gain better than the most known powerful PAPR reduction technique with a 99% reduction in required computational complexity.