KUALA LUMPUR (Feb 25): Project management services provider Mega Sun City Holdings Bhd plans to raise RM5.36 million through a private placement of up to 56.7 million new shares or 10% of its total issued shares, at an issue price to be determined later.

The proceeds from the proposed private placement will be used for working capital.

"Based on the indicative issue price of 9.45 sen per placement share, the proposed private placement is expected to raise gross proceeds of RM5.36 million," the ACE Market-listed company told a bourse filing on Friday (Feb 25). The indicative issue price of the placement shares at 9.45 sen per share is a 10% discount to the five-day volume-weighted average price of Mega Sun shares of 10.5 sen.

As at Feb 21, the issued share capital of Mega Sun stood at RM85.5 million comprising 567 million shares.

"The board is of the view that the proposed private placement is adequate to address the group’s current financial concerns at this juncture. In addition, the board is cautiously optimistic of the future prospects of the group moving forward," it added.

In September last year, Mega Sun had completed a private placement that saw it raising RM6.29 million.

Barring unforeseen circumstances, the proposed private placement is expected to be completed by the third quarter of 2022. Malacca Securities Sdn Bhd has been appointed by the board to act as the adviser and placement agent for the proposed exercise.

Mega Sun shares closed unchanged at 10 sen on Friday, bringing a market capitalisation of RM54.12 million.