KUALA LUMPUR (Sept 10): Green Packet Bhd has proposed to raise up to RM85.17 million via a private placement to third party investors to be identified later, to fund future viable investments, besides its existing fintech business.

The group said in an exchange filing today that the proposed placement entails the issuance of up to 135.18 million new shares, representing up to 10% of the total number of its issued shares.

Assuming the placement shares are issued at an illustrative price of 63 sen per placement share — approximately the five-day volume weighted average market price of Green Packet shares up to and including the latest practicable date on Sept 5 of 63.64 sen — the proposed exercise is expected to raise gross proceeds of between RM56.91 million and RM85.17 million.

Green Packet said it intends to use up to RM30 million of the proceeds to be raised for future viable businesses involved in complementary hardware and software solutions — including Internet of Things, big data analytics, and artificial intelligence — as well as digital services, particularly fintech solutions.

Another RM35 million will go to support working capital and business development costs for its existing digital services segment, which through its subsidiary Kiplepay Sdn Bhd provides fintech solutions under the kiple brandname.

The remainder of RM200,000 are for estimated expenses in relation to the proposed exercise, the group said.

The board has viewed that the proposed private placement is the most appropriate avenue for the company, to raise funds for its business investment(s) and working capital requirements of its fintech solutions business, it added.

Barring any unforeseen circumstances and subject to authorities’ approval, the group expects the proposed exercise to be completed by the fourth quarter of this year.

Shares of Green Packet settled unchanged today at 67 sen per share, after 34.15 million shares crossed, bringing a market capitalisation of RM600.62 million.