KUALA LUMPUR (Feb 2): Pestech International Bhd has aborted its plan to raise RM6.5 million via the second tranche of a private placement, as the identified investors had failed to complete the acceptance within the stipulated timeframe.

The company had proposed to issue 22.8 million new shares at 29 sen apiece under the second tranche, representing 2.4% of Pestech’s total number of issued shares.

In a filing to Bursa Malaysia on Thursday (Feb 2), the electrical power technology company said it would not seek an extension of time when the approval from Bursa Securities to complete the entire private placement expires on Feb 10.

Under its first tranche of the private placement, completed in March 2022, Pestech raised RM20.3 million through the issuance of 36.8 million shares that represented 3.87% of the company’s total number of issued shares. The issue price was fixed at 55 sen per share.

On Monday, Pestech confirmed that its executive chairman Lim Ah Hock and managing director-cum-group chief executive officer Lim Pay Chuan had been charged in court for allegedly abetting the misappropriation of RM10.6 million related to its wholly owned subsidiary Pestech Technology Sdn Bhd.

The duo had claimed trial in respect of all the charges against them, the company had said in a filing.

Shares of Pestech fell 19.35% or six sen to close at 25 sen on Thursday, valuing the company at RM248.06 million.