KUALA LUMPUR: HeiTech Padu Bhd plans to raise almost RM23 million from a private placement of 10.1 million shares for working capital.
These proceeds shall mainly be utilised for staff salaries, employers' statutory contributions, payment to suppliers and creditor, office administrative expenses, utilities expenses and overhead expenses.
In a filing with Bursa Malaysia Securities Bhd yesterday, the company said the private placement will allow the company to raise funds expeditiously and cost effectively and increase the size and strength of the company's capital base and shareholders' funds and potentially improve the liquidity and marketability of HeiTech shares.
"For illustration purposes, the indicative issue price will be RM2.27 per placement share, representing a discount of 24.4 sen or 9.71 per cent to the five day volume weighted average price of HeiTech shares," it said in the filing.
HeiTech has been in the news recently after it bagged a three-year RM190 million MySikap contract from the Road Transport Department.
It has bagged two other government contracts since the start of the year, comprising a RM58.89 million contract from the Inland Revenue Board for next-generation network services, and a RM13.11 million contract extension from the Immigration Department for maintenance of the Malaysian Immigration System (MyIMMs).
HeiTech said the proposed private placement is not expected to have any material effect on the consolidated earnings of the Company for the financial year ending December 31, 2024.
However, it said this will result in a dilution of the earning per share due to the increase in number of shares arising from the issuance of the placement shares.
"The potential effects of the proposed private placement on the company's earnings moving forward depend on, amongst others, the benefits to be derived from the utilisation of the proceeds to be raised from the proceeds.
"MIDF Investment has been appointed as the principal adviser and placement agent for the private placement, which is expected to be completed by October," it added.
HeiTech Padu's largest shareholder is former Perak PKR chief Datuk Farhash Wafa Salvador, who, through Rosetta Partners Sdn Bhd, acquired a 15.91 per cent stake in the group last month.
Meanwhile, other substantial shareholders include MyEG Services Bhd, holding a 15.89 per cent stake, and Padujade Corp Sdn Bhd with a 14.06 per cent stake.