KUALA LUMPUR (July 1): Green Packet Bhd has called off its proposed three-for-five rights issue to raise RM328.37 million, citing prevailing market conditions and its volatile share price since the proposal was announced.

“The board is presently considering other alternative forms of fundraising for the group's future operational requirements and will endeavour to make the necessary announcements, if required,” it said in a filing.

In a separate filing, Green Packet proposed a private placement of not more than 20% of its issued share capital to raise between RM30.45 million and RM48.96 million, at an indicative price of 23.4 sen per share.

Proceeds from the placement will be used for its payables, general expenses, staff benefits and marketing expenses, the digital services outfit said. 

Green Packet’s share price had lost 23.53% in value since it announced the rights issue on May 18. 

Thee counter closed up half a sen or 2% at 25.5 sen today, valuing the company at RM314.73 million.

The rights issue was proposed with two free warrants for every three rights shares subscribed. At the time, Green Packet’s projected gross proceeds were based on an indicative price of 34 sen.

The company had proposed to utilize the bulk of the rights issue proceeds to expand its fintech, proptech and cloud computing solutions businesses, with the balance earmarked for working capital.