KUALA LUMPUR (June 7): Two months after giving an assurance that its operations remain unaffected amid a boardroom tussle, Revenue Group Bhd has proposed a private placement of not more than 10% of its issued shares to raise up to RM24.31 million, mainly for working capital.

The placement entails the issuance of up to 53.32 million new shares to independent third-party investors, the e-payment solution provider said in a bourse filing on Wednesday (June 7).

As of May 31, Revenue Group's issued share capital stood at RM202.03 million, comprising 544.79 million shares and 93.9 million warrants.

In January, Revenue Group saw a tussle in its boardroom after the suspension of the executive functions of its co-founders Brian Ng Shih Chiow and his younger brother Dino Ng Shih Fang pending an investigation over "certain complaints" against them. The brothers have since ceased to be substantial shareholders of the group.

Following the suspension, the group appointed Francis Leong Seng Wui as its executive director. Leong went on to emerge as a substantial shareholder of the group with a 5.24% stake as at May 19.

In March, Revenue Group managing director Datuk Eddie Ng Chee Siong also ceased to be a substantial shareholder of the group and resigned from his post.

On Wednesday, Revenue Group said that from the expected proceeds of RM24.31 million from the private placement — based on an illustrative issue price of 25 sen per placement share — the group intends to use up to RM13.17 million for working capital.

The group said the placement may be implemented in multiple tranches, with the issue price for each tranche to be determined separately.

“The implementation of the placement arrangement in multiple tranches would provide flexibility to the company to procure interested investors to subscribe for the placement shares from time to time,” it added.

The private placement is expected to be completed by the fourth quarter of 2023.

Revenue Group shares finished half a sen or 1.72% lower at 28.5 sen, giving the group a market capitalisation of RM155.26 million. The counter has fallen 58.09% since the beginning of the year.