KUALA LUMPUR (Jan 2): Flexidynamic Holdings Bhd has proposed a private placement of up to 28.46 million shares, representing 10% of its issued share capital, to yet-to-be-identified third-party investors.

Based on an indicative issue price of 18.5 sen per placement share, the exercise is expected to raise gross proceeds of up to RM5.27 million, the gloves manufacturing solutions provider said in a bourse filing on Tuesday.

The group, which has not undertaken any other fundraising exercise in the past 12 months, said RM2.67 million of the placement proceeds will be used for working capital and the remaining RM2.5 million for future business expansion.

Flexidynamic expects the placement to be completed in the first half of 2024.

Malacca Securities has been appointed as the principal adviser and placement agent for the exercise.

Shares in Flexidynamic settled half a sen or 2.5% higher at 20 sen on Tuesday, giving the group a market capitalisation of RM58.36 million.