KUALA LUMPUR (Oct 24): Evergreen Max Cash Capital (KL:EMCC) is looking to raise about RM35.68 million via a private placement to repay credit facilities. This is the pawnbroking service provider's first fund-raising exercise since its listing on Bursa Malaysia's ACE Market in September last year.

In a filing to the stock exchange on Thursday, EMCC said the placement will comprise up to 111.49 million shares or 10% of the company's issued share capital.

The proceeds to be raised are based on an illustrative price of 32 sen per share, with the actual price to be determined later, it added.

EMCC said it had obtained RM45 million in revolving credit facilities to fund its cash capital for pawn loans.

“The revolving credit facilities allow the group to borrow funds as and when the cash capital is required for its pawnbroking business and repay whenever there is excess cash available when pawnors repay their pawn loans,” it said.

EMCC on Thursday also proposed to establish an employees' share option scheme with the number of shares to be issued equivalent to 10% of its issued share capital.

Mercury Securities has been appointed as principal adviser for the proposals and placement agent for the private placement, which is expected to be completed in the first quarter of 2025.

Moving forward, EMCC said it is actively exploring opportunities to expand its network of “Pajaking” pawnshops by setting up new outlets at strategic locations and through acquisition exercises.

“This would allow the group to increase its market presence and serve a wider customer base. The expansion of new pawnshops is expected to contribute positively to the group’s financial performance,” it said.

EMCC currently owns 28 “Pajaking” outlets and 38 “Cahaya Gold” outlets in Malaysia.

Shares of EMCC closed half a sen or 1.45% higher at 35 sen on Thursday, giving the company a market capitalisation of RM384.80 million.