KUALA LUMPUR (April 17): E-government services provider HeiTech Padu Bhd, which recently bagged a RM190 million contract from the Road Transport Department (JPJ), is looking to raise up to RM22.98 million via a private placement.
The group said in a bourse filing on Wednesday that the proceeds raised will mainly be utilised for working capital, and payment to suppliers and creditors.
The placement comprises 10.12 million shares or 10% of the group’s enlarged share base. For illustrative purposes, the indicative issue price is set at RM2.27 per share, representing a discount of 24.4 sen or 9.71% to the five-day volume-weighted average price of HeiTech Padu shares up to April 17 of RM2.51.
As at Dec 31, 2023, the group reported total cash and cash equivalents of RM9.68 million.
MIDF Investment has been appointed as the principal adviser and placement agent for the private placement, which is expected to be completed by October, the group said.
HeiTech Padu’s largest shareholder is former Perak PKR chief Datuk Farhash Wafa Salvador, who, through Rosetta Partners Sdn Bhd, acquired a 15.91% stake in the group last month. Other substantial shareholders include MyEG Services Bhd, holding a 15.89% stake, and Padujade Corp Sdn Bhd with a 14.06% stake.
The group recently made headlines after securing a three-year contract valued at RM190.01 million to provide maintenance and technical support services for JPJ.
It has bagged two other government contracts since the start of the year, comprising a RM58.89 million contract from the Inland Revenue Board for next-generation network services, and a RM13.11 million contract extension from the Immigration Department for maintenance of the Malaysian Immigration System (MyIMMs).
For the financial year ended Dec 31, 2023 (FY2023), the group reported a net profit of RM7.22 million, compared to a net loss of RM9.87 million for the previous year. Revenue declined 5.4% to RM277.86 million, from RM293.85 million.
HeiTech Padu shares settled two sen or 0.84% lower at RM2.37 on Wednesday, valuing the group at RM239.9 million. Year-to-date, the counter has risen by RM1.49 or 169.32%, despite being one of the worst-hit stocks during the penny-stock selling wave in mid-January.