Revenue Group Bhd plans to undertake a private placement, aiming to raise up to RM13 million in funds for its working capital requirements. 

The issue price for the placement shares is expected to be set at a discount of no more than 10% to the five-day volume-weighted average market price leading up to the price-fixing date.

The majority of the proceeds from the private placement, based on an illustrative issue price of 25 sen per placement share, will be allocated to working capital needs. This includes covering staff salaries and operating expenses. The remaining funds will be utilised for estimated expenses related to the exercise.

The private placement will involve the issuance of up to 53.3 million new Revenue shares, representing approximately 10% of the total number of issued shares. 

The placement will be exclusively offered to independent third-party investors, with their identities to be disclosed at a later stage.

Currently, Revenue Group’s issued share capital amounts to RM202.03 million, comprising 544.78 million shares, with no treasury shares held.

The company views the proposed private placement as an efficient means to raise additional funds for working capital requirements without incurring interest costs or principal repayments associated with bank borrowings.

The company remains optimistic about its future prospects and aims to enhance its market presence through potential acquisitions, joint ventures, or collaborations within the ICT industry and electronic payments sector in Malaysia.

Subject to unforeseen circumstances, the proposed private placement is expected to be finalised by the fourth quarter of 2023.

Revenue Group slid half a sen or 1.72% to close at 28.5 sen today, representing a market capitalisation of RM155 million. – TMR