Green Packet proposes private placement to raise up to US$23.6mil to fund cloud business
By Digital News Asia August 13, 2020
- Expects to invest around US$96 mil over next 4 years
- To offer better, comprehensive solutions to customers, strengthen digital segment
Green Packet Bhd has proposed a private placement to fund its cloud business whereby the company will issue up to 120.2 million shares, equivalent to approximately 10% of its outstanding issued share capital.
The said shares will be placed with independent third-party investors to be identified later at an issue price to be determined. For illustration purposes, based on a price of RM0.52 per share, the placement will raise up to RM98.9 million. From the proceeds raised, Green Packet intends to allocate up to RM96.2 million to purchase IT infrastructure and RM2.5 million as working capital for cloud business.
[RM1 = 0.24]
During the Extraordinary General Meeting held in July 2020, the company obtained the shareholders’ approval to diversify the company’s existing principal activities to include cloud computing solutions and related services. The company is expected to invest about RM80 million in the first year and approximately RM200 million in the subsequent 4 years of venturing into the cloud business.
TA Securities will act as the sole placement agent for this placement exercise. Green Packet expects the placement to be completed by the end of this year.
Green Packet chief executive officer/managing director CC Puan (pic) says, “The strong interest in our previous (private) placement shows shareholders’ confidence in Green Packet. With the substantial amount raised via the private placement, we are able to offer better and comprehensive solutions to our customers and strengthen our digital segment which meets Green Packet’s investment strategy.”