KUALA LUMPUR (Sept 6): Just over a month after completing a private placement exercise earlier this year, Aneka Jaringan Holdings Bhd has proposed to undertake another such cash call to raise RM15.51 million to fund its ongoing construction projects.

In a bourse filing on Wednesday, the construction outfit said the exercise will involve the issuance of up to 94.71 million shares — 10% of its share base — to independent third-party investors at an issue price to be determined later.

However, based on an illustrative issue price of 16.38 sen per share — a 9.95% discount to the five-day volume weighted average market price of Aneka Jaringan shares — the private placement is expected to raise up to RM15.51 million, according to Aneka Jaringan.

The company said RM15.32 million is to be utilised for working capital for ongoing projects, while the remaining RM190,000 will be set aside for the exercise’s expenses.

In July, Aneka Jaringan completed a private placement involving the issuance of 59.25 million to raise RM9.94 million, also mainly to fund working capital for its projects.

The company noted that in the fourth quarter ended Aug 31, 2023 (4QFY2023), it had secured three new projects with a cumulative value of RM225.16 million — raising the total project value secured in FY2023 to RM346.09 million.

The company reasoned that its planned private placement will enable it to raise funds more expeditiously and in an cost-effective manner as opposed to other equity fund-raising options.

The private placement is subject to the approvals of Bursa Securities and Aneka Jaringan’s shareholders. It is expected to be completed in the first quarter of 2024.

Alliance Islamic Bank Bhd has been appointed as the principal adviser and placement agent for the proposed exercise.

Shares in Aneka Jaringan ended half a sen or 2.78% lower at 17.5 sen, giving the company a market capitalisation of RM111.21 million.