KUALA LUMPUR, Malaysia (July 1): Green Packet Bhd has canceled its proposed three-for-five rights issue to raise RM328.37 million, citing current market conditions and the share price’s volatility since the proposal was disclosed. “The board is currently investigating potential alternative types of fundraising for the group’s future operational requirements,” it wrote in a filing. “If necessary, the board will endeavor to make the necessary announcements.”
Green Packet also proposed a private placement of up to 20% of its issued share capital to raise between RM30.45 million and RM48.96 million at an indicative price of 23.4 sen per share in a separate filing.
The funds will be utilized for payables, general expenses, employee perks, and marketing expenses, according to the digital services firm.
Since May 18, when Green Packet announced the rights issue, its stock has dropped 23.53 percent in value.
Today, the stock rose half a sen, or 2%, to 25.5 sen, valuing the company at RM314.73 million.
Two free warrants were proposed for every three rights shares subscribed to the rights offering. Green Packet’s predicted gross proceeds at the time were based on a hypothetical pricing of 34 sen.
The company had planned to use the majority of the funds from the rights offering to expand its fintech, proptech, and cloud computing solutions businesses, with the rest going toward working capital./n
