Fast Energy to diversify into consumer electronics

PETALING JAYA: Fast Energy Holdings Bhd has proposed a planned diversification in its business and plans to raise funds for the company through a rights issuance with warrants.

The company’s revenue is 99% mainly derived from the petroleum trading business. Its intention to diversify into the consumer electronics business is meant to reduce its reliance on the petroleum trading business, it said in filing with Bursa Malaysia yesterday.

“The company opines that moving forward, the consumer electronics business is expected to benefit from various factors driving demand for aforesaid services through technological advancements in the Internet of Things and the performance of the consumer electronics industry in Malaysia,” it said.

Meanwhile, the company has also proposed a rights issuance with warrants to which it said will strengthen its financial position and capital base – by reducing its gearing level and increasing its net assets.

“The proposed rights issue with warrants will enable the company to raise the requisite funds without incurring additional interest expense, as compared to bank borrowings, thereby minimising any potential cash outflow in respect of interest servicing,” it said.

The company said this proposed fund raising exercise could see it raising a minimum of RM2mil or more depending on the subscription level of shareholders.

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