KUALA LUMPUR (March 16): Pertama Digital Bhd expects to raise gross proceeds of up to RM87.8 million from the subscription by Australia-based Macquarie Bank Ltd of new shares in the group under a placement exercise.

The placement involves up to 43 million new shares, representing approximately 10% of Pertama Digital’s current share base of 433.36 million shares, the group said in a bourse filing on Thursday (March 16).

The illustrative subscription price is RM2.041 per placement share, representing a discount of about 9% to the five-day volume-weighted average price (VWAP) of the shares, up to the latest practicable date, of RM2.2437.

Pertama Digital said it entered into a subscription agreement with Macquarie Bank to facilitate the  placement, as this would allow the group to raise funds expeditiously notwithstanding its status as an affected listed issuer.

"The proposed placement does not form part of the regularisation plan of Pertama Digital. The proposed placement is intended to provide Pertama Digital with an interim source of funds," the group added.

The group had triggered paragraph 8.03A(2)(a)(bb) of the Main Market Listing Requirements when it completed its sale of  China-based Be Top Group Ltd last year.

It sold its entire equity interest in the textile subsidiary to Gifted Investments Ltd for RM70 million. With that, the group exited from the textile business with the aim of becoming a pure-play digital services player.

Of the proceeds from the placement, the group said RM35 million would be used for the acquisition of business in the digital solutions sector, and another RM35 million for the expansion of business via acquisitions and investments into other digital solutions business.

Further, the group will allocate RM16.26 million for working capital, leaving RM1.5 million for expenses for the placement.

Mercury Securities Sdn Bhd is the principal adviser and placement agent for the placement, which is expected to be completed by the first quarter of 2024. .

Pertama Digital operates the Malaysian government’s short messaging service gateway, namely “mySMS 15888”. It owns and operates a mobile application known as “MyPay” whereby such application consolidates the e-services of Malaysian government agencies into a single digital platform.

Pertama Digital also owns and operates a website application known as “eJamin”, an application that allows users to make payment electronically for criminal courts bails in Malaysia.

“As Malaysia moves towards adopting a digital economy, the anticipated increase in usage of information technology is expected to bolster positively to the future demand for information and communications technology services such as mobile and digital solutions offered by the Pertama Digital group,” it said.

The share price of Pertama Digital closed two sen lower to RM2.17, valuing the group at RM940.39 million. Since March 6, the counter has climbed 16%.