KUALA LUMPUR (Aug 12): Vortex Consolidated Bhd plans to raise up to RM21.05 million via a private placement, mainly for working capital requirements for its moneylending business.

The exercise will see up to 127.58 million shares or 10% of the group's total issued shares issued at a price to be determined later, Vortex said in a Bursa Malaysia filing.

This marks the group's second cash call this year after it completed a private placement on March 29. That placement raised gross proceeds of RM19.92 million to fund a mixed property development project.

Vortex has also undertaken several other cash calls over the past two years.

It raised gross proceeds of RM56.55 million via a rights issue mainly to repay bank borrowings and as working capital requirements for the mixed property development project and its moneylending business. The rights issue exercise was completed on April 28, 2021.

Prior to that, Vortex completed two rounds of private placements in January 2021, raising RM6.02 million, and in September 2020, raising 7.96 million.

The proceeds were used for repayments of bank borrowings.

Vortex said that based on an illustrative issue price of 16.5 sen per placement share, the latest private placement is expected to raise gross proceeds of up to RM21.05 million.

Besides moneylending, Vortex is also involved in information technology and property construction activities.

Shares in Vortex closed unchanged at 18 sen on Friday (Aug 12), with a market capitalisation of RM198 million.