KUALA LUMPUR (Jan 18): FSBM Holdings Bhd, a loss-making information technology service and systems provider, announced that it has fixed the price for its private placement shares at 20 sen apiece.

According to FSBM Holdings, the price represents the five-day weighted average market price of the counter from Jan 11 to Jan 17.

It is worth noting that FSBM Holding’s shares have risen by 25% or 4 sen from 16 sen from Nov 29, 2016 and closed at 20 sen today.

This values the main-market listed FSBM Holdings, which has been suffering losses for six straight years, at RM27.2 million.

To recap, FSBM Holdings had on Sept 9, 2016 announced its plan to raise some RM2.28 million via a private placement exercise by issuing 12.66 million shares in several tranches to selected investors.

The bulk of the cash proceeds from this exercise, said FSBM Holdings, will be channelled to fund its business working capital and operating expenses.

The first tranche of the placement exercise was completed in end-December 2016, with 6.36 million shares issued, raising a total of RM1.27 million.

However, it is unclear how many shares FSBM Holdings plans to issue in the second tranche of the private placement exercise.

Assuming there are 6.3 million shares still to be issued, and with the 20 sen price, FSBM Holdings is expected to net some RM1.26 million.