Prestariang proposes private placement to raise RM19.29m

Prestariang proposes private placement to raise RM19.29m
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KUALA LUMPUR (Jan 21): Prestariang Bhd, the sole Microsoft licensing solutions provider for the Malaysian government, has proposed to undertake a private placement of not more than 10% of its issued share capital to raise up to RM19.29 million. 

In a filing with Bursa Malaysia today, Prestariang said the private placement entails the issuance of up to 48.23 million new shares. 

As of Jan 17, Prestariang has an issued share capital of RM116.33 million, comprising 482.30 million shares. 

The group said the actual number of placement shares to be issued and its respective issue price will be determined at a later date. 

It added that the shares will be placed out to independent investors to be identified later. 

From the proceeds totalling RM19.29 million — assuming the placement shares are issued at an indicative issue price of 40 sen per share — Prestariang intends to use RM12.66 million for general working capital, RM6 million for repayment of bank borrowings, and RM630,000 to defray expenses for the private placement.  

On the rationale of the exercise, Prestariang pointed to the terminated concession agreement with the government for the national immigration control system (SKIN) project.  

Home Minister Tan Sri Muhyiddin Yassin announced in December 2018 that the Cabinet had decided to scrap the RM3.5 billion SKIN project, in which Prestariang holds a 70% stake, based on the need for a new system to save government funds. 

Prestariang’s unit, Prestariang Skin Sdn Bhd (PSKIN), had initiated legal action to seek RM733 million in damages, after the government terminated the project it had awarded to PSKIN in 2017.

Shares of Prestariang closed down 0.5 sen or 1.20% at 41 sen today, for a market capitalisation of RM197.74 million.