KUALA LUMPUR (Sept 5): XOX Bhd said it plans to undertake a 10% private placement in a third independent party investor to raise RM6.95 million for branding and marketing activity expenses.

The group said the activities are expected to garner more brand awareness from consumers and increase its subscriber base and market share.

XOX said its mobile network subscriber base has grown 37.4% to 2.39 million subscribers as at July 31, from 1.74 million a year ago, mainly due to the marketing and branding efforts.

On the private placement, XOX said the shares would be issued based on a discount of less than 10% to the five-day volume-weighted average market price (VWAP) of XOX shares immediately preceding the price-fixing date.

As the placement may be implemented in several tranches within six months, there could potentially be several price fixing dates and issue prices.

Based on an illustrative issue price of seven sen per placement share, the issue price would represent a 6.54% discount to the five-day VWAP up to Aug 24 of 7.49 sen, said XOX.

The group expects the placement to be completed by the fourth quarter of 2018.

XOX shares closed unchanged at 6.5 sen today, for a market capitalisation of RM64.6 million.