KUALA LUMPUR (Apr 29): NetX Holdings Bhd shares climbed as high as 15% in morning trades after proposing a rights issue, to raise up to RM62.56 million via a 1-for-1 rights issue of up to 625.55 million shares with free detachable warrants, to expand into the electronic payment solutions business.
At 11.29am, the stock was 0.5 sen higher at 70 sen, with 5.44 million shares done. It was one of the most actively traded stocks across the bourse.
Yesterday, the group announced that the proceeds to be raised from the proposed rights issue was based on an indicative issue price of 10 sen per share and will be used to develop an electronic payment platform for electronic funds transfer at point-of-sale terminals.
In conjunction with the proposed rights issuance, it is also proposing to increase its authorised share capital to accommodate the issuance of the new rights shares.
NetX said up to 70% or RM44.06 million will be used to acquire smaller technology companies that have a developed mobile-based solutions, which has the potential to be commercialised.
Among the companies to be considered include those in cloud-based applications; and smartphone applications that are developed for fourth-generation long-term evolution mobile spectrum.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)