KUALA LUMPUR: Kumpulan Jetson Bhd is proposing a private placement to raise up to RM7.78 million for working capital within a one-year period, with an indicative issue price of 35 sen.

In a filing with Bursa Malaysia yesterday, the group said the indicative price represents a discount of 8.85% to the five-day volume weighted average price of Kumpulan Jetson’s share price of 38.4 sen as at Feb 24 this year.

The placement involves issuing up to 22.22 million new shares to independent third party investor to be identified at a later date.

The maximum volume of placement shares is equivalent to about 10% of the group’s total enlarged number of issued shares of 222.16 million shares.

Subsequent to the placement exercise, Kumpulan Jetson expects its gearing to drop to as low as 0.4 times, from 0.52 times as at Dec 31, 2015 (FY15).

The group expects the corporate exercise to be completed by the second quarter of FY17.