The issue price represents a discount of approximately 1.28% to the five-day volume-weighted average market price of Focus' shares, up to and including Oct 6, of 10.13 sen per share.

Based on the issue price of 10 sen per placement share and the 15 million shares offered, the company is expected to raise gross proceeds of RM1.5 million.

Focus Dynamics had proposed in August a private placement of up to 45 million new shares of 10 sen par each, representing up to 30% of its existing paid-up capital, to raise additional working capital and repay bank borrowings.

The placement exercise, if fully implemented, will significantly dilute the company's present shareholdings structure. The company's board had said that it has no intention to place the placement shares to directors or substantial shareholders of Focus Dynamics and/or persons connected with them.