KUALA LUMPUR (Nov 3): Parlo Bhd plans to raise RM25.84 million via a private placement to fund its migrant workforce-related services business, and to repay bank borrowings.

In a bourse filing, the group said it is placing out up to 72.8 million new shares, representing 20% of its total issued shares, to third-party investors to be identified at an issue price to be fixed.

Of the proceeds, RM12 million will be used to invest in its migrant workforce-related services segment, RM7.06 million to repay bank borrowings, and RM5.93 million for working capital use. The balance RM860,000 will be used to defray expenses associated with the exercise.

Parlo said it teamed up with the Diamond Palace Group of Companies Ltd last month to provide migrant workforce-related services to facilitate the supply of migrant workers from Myanmar.

"Essentially, this funding is meant to provide the group with the initial start-up capital to kick-start the commencement of this new employment agency-related services business," it said.

The private placement is expected to be completed in the fourth quarter of 2020, with Mercury Securities serving as the principal adviser and placement agent for the move.

Shares in Parlo finished 1.05% or half a sen lower at 47 sen today, valuing it at some RM171.1 million. It saw 12.58 million shares traded.