KUALA LUMPUR (July 15): NetX Holdings Bhd intends to raise up to RM62.95 million — higher than its market capitalisation of RM52.46 million — through a share consolidation and a rights issue with warrants.  

In a filing today, the IT services provider said it plans to consolidate every 50 existing shares into one, which would result in an adjustment to its share price. 

For illustration, based on the company’s last transacted market price of one sen per share, the adjusted reference price would be 50 sen, post-consolidation. 

NetX will then carry out a renounceable rights issue of up to 629.49 million new shares on the basis of six rights shares, together with three free warrant C for every one consolidated share, on a date to be determined later. 

The issue price of the rights share is also to be determined at a later date. However, the company said for illustration purposes, based on the issue price of 10 sen per share, the gross proceeds to be raised could be up to RM62.95 million.  

Of the total proceeds, RM25 million will be used for marketing purposes for its lifestyle mobile applications GemSpot and GemSpot Lite, RM5 million for development of food and beverage e-commerce platform, and RM8 million for development and integration of a business intelligence and data analytics system.  

Another RM15 million will be utilised for the acquisition of investments in other complementary businesses, RM9.05 million for its working capital and RM900,000 for expenses for the corporate exercise.  

NetX shares closed 0.5 sen or 3.33% lower at one sen, valuing the group at RM52.46 million. Some 13.34 million shares were traded.