KUALA LUMPUR (May 18): Green Packet Bhd plans to raise up to RM328.37 million through a rights issue with free detachable warrants, to fund the expansion of its digital services business and for general working capital.
The group said the exercise will entail an indicative issuance of up to 965.79 million rights shares together with up to 643.86 million warrants, based on an indicative entitlement basis of three rights shares for every five existing shares held, together with two free detachable warrants for every three rights shares subscribed.
The gross proceeds to be raised from rights issue with warrants are based on an indicative issue price of 34 sen per rights share, the group said in a bourse filing.
Under the maximum case scenario, RM289.2 million of the proceeds will be used to fund the expansion of its digital services segment. Of this, RM123.2 million will go towards the expansion of fintech solutions, RM26 million for the enhancement of proptech solutions, and RM37.47 million to fund cloud computing solutions.
Green Packet’s wholly owned subsidiary, Kiplepay Sdn Bhd, provides fintech solutions under the “kipple” brand name.
“The Green Packet group intends to expand further in business development activities as well as enhancement and upgrading of its payment gateway and e-wallet solutions to enable it to support the needs of large enterprises and/or government agencies which may require cashless solutions to support more voluminous online transactions for larger user base and to expand its customer base,” the group said.
Another RM37.47 million will be allocated for general working capital, mainly for staff-related expenses including salaries and allowances as well as administrative expenses which influenced office rental, while the remaining RM1.7 million will be used to defray expenses related to the exercise.
The group expects the rights issue with warrants to be completed by third quarter this year.
Green Packet’s share price closed up one sen or 3.08% at 33.5 sen, giving the group a market capitalisation of RM422 million. The counter saw 2.05 million shares traded.
