KUALA LUMPUR (Nov 16): Shares in Omesti Bhd fell 4.31% in early trade today after it proposed a private placement of up to 10%, or 51.4 million shares, to independent third party investors at an issue price to be identified later, to raise up to RM25.7 million for bank repayments and working capital.

At 9.04am, Omesti fell 2.5 sen to 55.5 sen with 272,200 shares done.

The IT software and hardware distributor said the proposed exercise is the most cost-effective method to meet funding needs for further expansion, without incurring additional interest costs associated with bank borrowings or other debt instruments.

At an indicative issue price of 50 sen apiece, it represents a discount of approximately 2.55% to its volume weighted average market price for the five market days immediately preceding the price fixing dates, it said.