KUALA LUMPUR (Feb 19): Dataprep Holdings Bhd has put on hold its proposed private placement of up to 30% of its enlarged share base to raise up to RM40.17 million.
The company this month won a 30-year concession agreement to develop a passive telecommunications infrastructure project in Bandung, Indonesia, as part of a consortium, with expected investments of around RM95.4 million over three years.
The proposed private placement, announced last December, was mainly to fund working capital for its existing projects.
“On behalf of the board, Malacca Securities wishes to announce that in view of the Bandung project, the company is proposing to put the proposed private placement ‘on hold’ to reformulate its fundraising options.
“The company is contemplating other fundraising avenues, such as through bank borrowings, rights issue, etc, to meet the funding requirements of the Dataprep group, particularly for the Bandung project,” it said.
Under the proposed private placement, Dataprep had said Widad Business Group Sdn Bhd — its 7.86% shareholder — has provided irrevocable and unconditional undertaking to subscribe for 10% of the enlarged share base to be issued. The portion would involve RM13.39 million.
Widad Business Group is linked to Tan Sri Muhammad Ikmal Opat Abdullah, who is the largest shareholder of Widad Group Bhd, whose shares had fallen by 73% this year following the margin call shake-up among several Bursa-listed companies in January.
Dataprep is in a net-cash position, with cash of RM14.81 million at end-September, against total borrowings of RM4.71 million. Retained losses stood at RM74.89 million, against a share capital of RM148.78 million.
It is also in the midst of acquiring a 70% stake in network connectivity manager and services provider DACS Network Solutions Sdn Bhd for RM10.5 million.
Shares of Dataprep, which have fallen 14.71% since the start of the year, closed at 14.5 sen on Monday, giving it a market capitalisation of RM110.83 million.