KUALA LUMPUR (June 29): Vivocom International Holdings Bhd has proposed to place new shares to third party investors to raise money for working capital and bank borrowings repayment.
 
The group expects to raise between RM35.58 million and RM47.87 million from the placement of shares to parties to be identified later, it said in a filing with Bursa Malaysia.
 
Vivocom said it will be issuing up to 10% of its total number of issued shares. As at June 19, being the latest practicable date (LPD), the total number of issued shares of Vivocom was 3.23 billion.
 
The group said if all its outstanding 626.15 million outstanding warrants B, 250.37 million warrants C and 240.82 million warrants D are exercised prior to implementation of the private placement, a total of 435.16 million new shares will be issued, representing 10% of the enlarged number of issued shares.
 
The issue price of the placement shares will be fixed at a later date, Vivocom said.  The shares will be issued at a price of not more than 10% discount to the 5-day volume weighted average market price (VWAMP) of Vivocom shares, immediately preceding the price-fixing date.
 
"For illustrative purposes only, the indicative issue price of the placement shares is assumed at 11 sen per share, which represents a discount of approximately 9.32% to the 5-day VWAMP of Vivocom shares up to and including the LPD of RM0.1213 per share," Vivocom said.
 
The group said the private placement is expected to be completed by the third quarter of 2017.
 
Vivocom’s share price closed unchanged at 12.5 sen today, with 4.05 million shares exchanging hands, for a market capitalisation of RM404.28 million. It was trading at 25 sen on Aug 18, 2016.