KUALA LUMPUR: Cuscapi Bhd
has proposed a private placement of up to 94.49 million new shares, representing 10% of its issued shares, to raise funds mainly for working capital.
In a filing with Bursa Malaysia, the information technology solutions provider said the new shares would be placed with third-party investors to be identified later.
Based on an illustrative issue price of five sen per share, the exercise is expected to raise about RM4.72mil.
Of the proceeds, RM4.55mil will be used for working capital within 12 months, while RM170,000 has been earmarked for expenses related to the private placement.
Cuscapi said the working capital would be used to pay trade creditors, including hardware suppliers, outsourcing vendors and IT solutions and services providers, as well as operating and administrative expenses.
The company said the private placement provided a more expedient and efficient avenue to raise funds compared with other forms of equity fundraising, such as a rights issue.
It would also allow the group to raise funds without incurring additional interest expenses and principal repayment obligations associated with debt financing.
The proposed placement shares will be issued at a discount of not more than 10% to the five-day volume-weighted average market price of Cuscapi shares up to the last trading day immediately preceding the price-fixing date.
The exercise may be implemented in one or multiple tranches within six months from Bursa Securities' approval.
Upon completion, Cuscapi's issued shares could increase to 1.04 billion from 944.88 million currently.
Cuscapi expects the exercise to be completed by the first quarter of 2027, barring unforeseen circumstances.
TA Securities Holdings Bhd is the principal adviser and placement agent for the exercise.
