KUALA LUMPUR (Oct 14): Binasat Communications Bhd has proposed a private placement to raise as much as RM23.3 million to fund its working capital, mainly for the group’s fibre optic telecommunications network supporting services.
The placement will entail the issuance of up to 64.71 million shares to third party investors, the telecommunications support services provider said in a filing with Bursa Malaysia.
Based on an illustrative issue price of 36 sen, the exercise is expected to raise up to RM23.3 million, of which RM21.82 million will be used for working capital consisting of payments for subcontractors (RM9.32 million) and purchases of raw materials (RM12.5 million).
Another RM1.29 million will be used to enhance the group’s fibre optic network installation and commissioning service capability, which include capital expenditure (RM450,000) and expansion of in-house team (RM840,000).
Binasat said the private placement is expected to be completed within six months from the date of approval from Bursa Securities.
Binasat’s share price closed 2.5 sen or 6.33% lower at 37 sen, valuing the group at RM119.72 million.