KUALA LUMPUR (Dec 9): E-payment solutions provider Managepay Systems Bhd (KL:MPAY) has proposed a rights issue of one new share for every two shares held, to raise up to RM51.6 million to fund ongoing and future projects.

A maximum of 516.04 million new shares will be issued at 10 sen each, while the company also plans to issue up to 774.06 million free warrants on the basis of one warrant for every two existing shares, according to a bourse filing on Monday.

The warrants will have a three-year tenure, the company said. Based on an assumed exercise price of 14 sen per warrant, the gross proceeds from the warrants could reach up to RM108.37 million.

The entitlement date will be decided later, said Managepay.

The company said its ongoing projects include the Chery P2P financing project, the Pearl Super App, a home remit cross-border remittance platform, Keretapi Tanah Melayu Bhd super app, and Mastercard prepaid services.

“The board believes that the proposed rights issue is in the best interests of the company as it provides the necessary capital for the group to expand its core business and pursue value-accretive partnerships/collaboration that are synergistic with both of its fintech and non-fintech business and align with its long-term growth plan," said Managepay.

It added that the proposals are expected to be completed by the second quarter of 2025, subject to approvals from Bursa Securities, shareholders and other relevant authorities.

Managepay’s share price closed unchanged at 11.5 sen on Monday, giving it a market capitalisation of RM118.7 million. Year-to-date, the counter has declined over 11%.