Saturday 18 Jan 2025
By
main news image

KUALA LUMPUR (Nov 27): Integrated circuit maker JF Technology Bhd (KL:JFTECH) plans to raise RM46.35 million via a private placement to fund its new investment and ongoing business expansion.

The exercise involves the placement of up to 10% of its issued shares totalling 92.71 million shares to independent third-party investors to be identified later, the company said in a bourse filing on Wednesday.

Assuming the maximum number of placement units are issued at 50 sen per share, the gross proceeds to be raised is RM46.35 million.

The company has earmarked RM27 million for the future investment, and is in the process of securing viable investment or business ventures. These are expected to be in an industry which is complementary to the company.

JF Tech also plans to utilise RM15 million from the proceeds as capital expenditure for its planned expansion, which consists of factory expansions and upgrading of manufacturing equipment.

Another RM3.25 million will be used for its working capital and the remaining RM1.1 million for defraying estimated expenses relating to the placement exercise.

The proposal is expected to be completed by the second quarter of 2025, said JF Tech.

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

JF Tech recently announced the acquistion of two Singapore-based companies for a combined value of RM26 million.

Shares of JF Tech closed down 1.5 sen or 2.9% to 51 sen on Wednesday, valuing the company at RM473 million. The stock has dropped 38% since the beginning of this year.  

Edited ByS Kanagaraju
      Print
      Text Size
      Share