Kronologi Asia plans to raise up to RM22.84m via private placement

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KUALA LUMPUR (Aug 2): Kronologi Asia Bhd plans to raise up to RM22.84 million via a placement of up to 10% of its shares to third-party investors to be identified later.

In a filing with Bursa Malaysia, Kronologi Asia said the proceeds, derived from an illustrative price of 63 sen per share for the issuance of up to 36.25 million new shares, would enable the company to expand its business, without incurring interest costs or service principal repayments, as compared to bank borrowings.

From the total proceeds, RM10 million will be used for managed services cum transnational infrastructure equipment and RM8 million will be used for future business development and expansion; RM4.32 million will be set aside for working capital, while the balance RM520,000 will be used to defray estimated expenses related to the proposed exercise.

Of the RM10 million for managed services cum transnational infrastructure equipment, the group intends to use RM7.5 million to buy and deploy managed services infrastructure equipment and platform for the group's additional operations centre, which it wants to set up from the fourth quarter of this year in Malaysia or other Asean countries. 

"As part of Kronologi Asia Group’s strategy to accelerate market penetration, the group intends to expand its managed services by continuing with the development and offering of managed services cum transnational infrastructure for storage solutions in the Asian region,” the filing added.

Kronologi Asia’s share price fell 0.5 sen or 0.71% to close at 70 sen today, giving it a market capitalisation of RM255.67 million.