Red Ideas fixes placement share price at 35 sen apiece

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KUALA LUMPUR (Oct 27): Mobile community security communication software developer Red Ideas Holdings Bhd has fixed the issue price of its placement shares at 35 sen per share to be issued pursuant to the placement.

Red Ideas said this in a filing to Bursa Malaysia this afternoon.

The company had on Oct 17 said it aims to raise some RM7 million through Bursa Malaysia's newly-launched Leading Entrepreneur Accelerator Platform (LEAP) Market.

In its filing with the stock exchange, Red Ideas had said it intended to raise the fund via private placement, at an indicative price of 35 sen per share.

The placement size would be 20 million shares, representing 20% of the group's enlarged share capital.

Red Ideas' business involves developing software products and solutions that are catered primarily to communities, be it residential or commercial, with the goal of enhancing security, communications and convenience.

So far, the group has deployed its services to 83 communities and has a total of about 23,000 registered users.

After the fundraising, Red Ideas plans to spend RM4.15 million or 59.3% of the total proceeds raised on general working capital.

The group will also allocate RM1 million each for research and development, and office expenses, renovation and new branch offices.

The remaining RM850,000 will be used for listing expenses.

Red Ideas targets to complete the allotment of the share placement and listing on the Leap Market by end of October this year.

The group has appointed M&A Securities Sdn Bhd as its approved adviser, placement agent and continuing adviser.