Dataprep to raise up to RM16.7m from private placement

KUALA LUMPUR (April 21): Dataprep Holdings Bhd has proposed a private placement exercise to raise up to RM16.7 million for working capital, repayment of bank borrowings and future investments.

In a filing with Bursa Malaysia, the IT company said it intends to issue up to 139.06 million shares, equivalent to 30% of its outstanding shares, at an issue price to be determined later.

The company said the first tranche of the share placement comprises 75 million shares or a 13.9% equity stake in the company, based on its enlarged number of issued shares of 538.54 million after the tranche’s placement.

The first tranche will be issued to its largest shareholders, Wardah Communication Sdn Bhd and its parent company Widad Business Group Sdn Bhd. Post-first tranche placement, the two firms will collectively own a 64.37% stake in the group.

Dataprep said the remaining 64.06 million placement shares will be placed out to third party investors.

The company said  for illustration purposes, based on issue price of 12 sen per share, the placement shares could raise up to RM16.7 million.

Dataprep intends to use about RM6 million of the gross placement proceeds to finance its working capital requirements, which includes administrative and operating expenses.

Another RM6 million will be used for repayment of bank borrowings, while RM4.5 million will be allocated for future investments.

The company expects the private placement to be completed by the fourth quarter of this year.
Dataprep’s share price closed 0.5 sen or 4.17% lower at 11.5 sen, giving the group a market capitalisation of RM53.31 million. Some 3.67 million shares were traded today.