Dagang NeXchange Berhad (“DNeX”) has proposed to undertake a private placement of up to 20 per cent of its total issued shares to third party investors to be identified later.
Based on the indicative issue price of RM0.22 per placement share and assuming the Group’s outstanding convertible securities are fully exercised prior to implementation of the proposed private placement, DNeX is expected to raise gross proceeds of up to RM109.14 million from the corporate exercise as it looks to fund its next growth phase.
The Group intends to utilise the gross proceeds to mainly finance suitable and viable potential growth opportunities which in turn can generate positive returns moving forward. In addition, the gross proceeds will also be used as partial repayment of bank borrowings, working capital, and for expenses associated with the exercise. Such growth opportunities include investments that will expand and complement the company’s focus on its core business.
DNeX believes that there are sound opportunities where it can tap to put the Group back on the growth path. Especially under current market conditions, valuations of certain IT and Energy assets have become attractive for the Group to consider investing in. However, the Group will be very selective and prudent in making investment decisions so as to ensure the preservation and growth of shareholder value.
The corporate exercise will build up the Group’s war chest and strengthen its capabilities to develop new sustainable revenue lines as part of our plan to chart the next growth phase for the Group.