KUALA LUMPUR: SYF Resources Bhd has signed an underwriting agreement with Malacca Securities Sdn Bhd for the underwriting of the open portion of its rights issue to raise RM62.58mil.
SYF, which has disposed of its furniture manufacturing business, will enter into the financial services industry via the acquisition of stockbroker M&A Securities in a reverse take-over (RTO) exercise.
On Jan 19, 2023, SYF received shareholders’ approval for the RTO, which comprises multiple proposals, including a rights issue of 284.44 million new shares at 22 sen apiece.
SYF’s shareholders under Insas Bhd have undertaken to subscribe for their full entitlement to the rights issue.
Concurrent with the shareholders’ commitment, SYF's board of directors has procured underwriting for the open portion of the remaining rights issue to achieve full subscription of the rights issue.
In addition to the rights issue, SYF will also undertake a restricted issue of 157.8 million shares at 22 sen apiece (totalling RM34.72mil) to the eligible directors and employees of the enlarged SYF group, including M&A Securities as well as persons who have contributed to the growth of M&A Securities.
In total, the enlarged SYF group will raise RM97.29mil from the two fundraising exercises.
"The funds raised will allow M&A Securities to accelerate its growth path, as we pursue one of our key objectives, which is to grow our capacity and talent pool.
"This is in anticipation of the rising demand for our capital market services as M&A Securities continuously brings in fresh equity to the capital market via its steady pipeline of initial public offerings,” said SYF executive director and M&A Securities managing director of corporate finances Datuk Bill Tan.