KUALA LUMPUR (Nov 11): Compugates Holdings Bhd said on Thursday (Nov 11) that it has proposed to undertake a private placement of up to 20% of its issued shares to raise RM11.08 million for working capital.

The electronic products distributor said in a bourse filing that the proposed private placement may involve the issuance of up to 763.94 million Compugates shares.

It said the placement shares will be placed to independent third-party investor(s) to be identified later at an issue price to be determined later.

However, based on an indicative price of 1.45 sen, the group is expected to raise RM11.08 million.

Of the proceeds, it said about RM8.8 million will be used for working capital, while RM2.2 million will be used to purchase an integrated water supply system scheme.

The proposed private placement is expected to be completed by the first quarter of 2022.

Compugates closed unchanged at 1.5 sen on Thursday, valuing the group at RM57.29 million.