KUALA LUMPUR (April 25): Catcha Digital Bhd (KL:CATCHA) is raising up to RM35.32 million through a renounceable rights issue and private placement to partially fund around RM111 million worth of acquisitions and strengthen its financial reserves.
In a filing with Bursa Malaysia, the company said the renounceable rights issue aims to raise RM25.23 million, while the private placement will generate RM10.09 million.
Catcha Digital has signed deals to purchase a 60% stake in Drive 2 Digital Sdn Bhd for RM16.2 million, a 92.5% stake in Theta Service Partner Sdn Bhd for almost RM35 million, a 60% stake in Framemotion Studio for RM37.3 million, and a 51% stake in DS Services for nearly RM23 million.
The company said it is also negotiating acquisitions in exhibitions, consultancy, advertising, and digital media to expand its business, diversify revenue, and improve financial performance for long-term shareholder benefit.
The rights issue involves a one-for-four offer of 90.12 million shares at 28 sen each, plus up to 180.24 million free detachable warrants. The private placement will issue 36.05 million shares at the same price. These moves will increase the company's share base by 35%.
Catcha Digital’s major shareholders, Catcha Investments and Catcha Group, have committed to subscribing to the rights issue, raising at least RM11.51 million.
In its previous fundraising exercise on Feb 6, Catcha Digital conducted a private placement, issuing 8.1 million shares at 36 sen each, raising RM2.916 million to partially fund the acquisition of DS Services Sdn Bhd.
Catcha Digital will hold an online investor briefing on April 29, 2025, to discuss its recent acquisitions and fundraising efforts.
For the 12 months ended FY2024, the group’s net profit more than doubled to RM5.27 million from RM2.06 million, while total revenue increased 62.9% to RM39.39 million from RM23.57 million.
As at end-2024, its cash and cash equivalents stood at RM5.03 million, with no material borrowings.
Shares of Catcha Digital closed unchanged at 28 sen on Friday, giving it a market capitalisation of RM100.93 million. Year-to-date, the stock has fallen 23.3%.