KUALA LUMPUR (Jan 21): Kumpulan Powernet Bhd (KPower) has proposed to undertake a private placement of new shares in the company of not more than 10% of its issued share capital to raise up to RM12.18 million.

In a bourse filing today, KAF Investment Bank Bhd on behalf of KPower said the private placement entails the issuance of up to 7.61 million new shares.

It said the actual number of placement shares to be issued will be determined at a later date.

KAF said the placement shares will be placed out to independent investors to be identified later.

From the proceeds of the RM12.18 million, KPower intends to use RM6 million for business expansion through investments and/or acquisitions, RM6.03 million for working capital and RM150,000 to defray expenses for the private placement.

On the rationale of the exercise, KAF said it will enable KPower to raise funds for the purposes stated above.

As of Jan 20, KPower has an issued share capital of RM28.99 million comprising 76.15 million shares.

At the midday break today, KPower rose 1.66% or 3 sen to RM1.84, valuing it at RM140.12 million.