KUALA LUMPUR (July 2): ManagePay Systems Bhd announced that it has received undertakings from independent third party investors — including former Hong Leong Financial Group Bhd chief executive officer Datuk Yvonne Chia and Fajarbaru Builder Group Bhd chairman Tan Sri Kuan Peng Ching@Kuan Peng Soon — to subscribe for some 120.81 million placement shares at an issue price of 23 sen apiece, for a total of RM27.79 million.

In a filing with Bursa Malaysia this evening, ManagePay said Chia will subscribe for 20 million shares for RM4.6 million, while Kuan will subscribe for 5 million shares for RM1.15 million.

Other investors include ConnectIoT Sdn Bhd, which will subscribe for 13.8 million shares, followed by RedGiant Analytics Asia Sdn Bhd (26.47 million shares), Andrew Chia Wei Jun (12 million shares), Chu Hong Keong (8 million shares), Chin Chee Thoy (20 million shares) and Soon Kian Heng (15.55 million shares).

“The proposed private placement is conditional upon the approval being obtained from the shareholders of the company at the forthcoming extraordinary general meeting (EGM),” ManagePay said in a filing. The group has scheduled the EGM on July 14, 2015.

ManagePay also noted that should any of its outstanding warrants be exercised prior to the implementation of the private placements — which will increase its issued and paid-up capital — the group will place additional placement shares to third party investors.

As at June 19, 2015, ManagePay has 182.98 million of outstanding warrants, which carries the right to subscribe for a new share during the three-year exercise period.

Assuming that all its warrants are exercised, ManagePay’s issued and paid-up capital will increase to 585.7 million shares from 402.72 million shares currently.

To recap, ManagePay had on March 25, 2015 announced its plan to raise up to RM40.41 million by issuing up to 175.7 million shares — equivalent to 30% of its existing issued and paid-up capital — at 23 sen per share.

As at March 31, 2015, ManagePay has cash and cash equivalent of RM15.45 million.

ManagePay had said that the bulk of the proceeds raised will be used to develop its electronic money (e-money) project via online wallet and prepaid card.

ManagePay (fundamental: 1.3; valuation: 0) had also noted that it would sign strategic partnership agreements with other card service provider such as Visa, MasterCard and China’s UnionPay for its e-money project.

ManagePay’s counter has risen 75.6% from 20.5 sen on Feb 13 to its one-year high of 36 sen on May 15. It has since retreated to close at 29 sen today, with 1.83 million shares traded, giving it a market capitalisation of RM115.35 million.

(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)