The Star – Green Packet to undertake private placement
PETALING JAYA: GREEN PACKET BHD has proposed to undertake a private placement to raise up to RM85.2mil to finance future investments and working capital.
In its filing with Bursa Malaysia, the telecoms and technology company said the exercise would entail an issuance of up to 135.2 million new shares, representing up to 10% of the total number of issued shares of Green Packet.
Based on the illustrative issue price of 63 sen per placement share, Green Packet said the exercise is expected to raise gross proceeds of RM56.9mil and RM85.2mil under the minimum and maximum scenarios.
It said the proposed private placement would enable the company to raise funds to part-finance the expansion of the group’s business through business investments, as well as to finance the working capital requirements of fintech solutions, which fall under the group’s digital services segment.
“The proposed private placement will also enable Green Packet to raise funds to meet its working capital requirements without relying on borrowings, ” it explained.
Green Packet expects the exercise to be completed by the fourth quarter of 2019.