KUALA LUMPUR (July 10): Propel Global Bhd (KL:PGB) has proposed a private placement of up to 73.02 million new shares, representing about 10% of its total issued shares, to yet-to-be-identified investors to raise as much as RM6.57 million for working capital.

In a Thursday bourse filing, the oil and gas (O&G) services provider said RM2 million of the proceeds will be used to secure bank guarantees for new project tenders, such as marine heating, ventilation, and air conditioning (HVAC), and construction services. Of the balance, RM4.48 million will be used for general administrative expenses such as staff wages, voluntary separation schemes, rent, and utilities.

The remaining RM90,000, or 1.4%, will cover estimated expenses related to the placement, including professional and regulatory fees.

Propel Global, which is primarily involved in O&G services, provides technical and building maintenance, and ICT solutions. It intends to use the proceeds to support ongoing and future operations across these segments.

The proposed private placement will be implemented in multiple tranches over six months. The issue price for each tranche will be fixed separately, but it will not be at a discount of more than 10% to the five-day volume-weighted average price (VWAP) of PGB shares prior to the price-fixing date.

The expected proceeds are based on an indicative issue price of nine sen per share, which represents a 7.5% discount to the five-day VWAP of 9.73 sen as of June 30.

UOB Kay Hian (Malaysia) Sdn Bhd is the adviser and placement agent for the exercise, which is expected to be completed by the first quarter of 2026, subject to regulatory approvals.

Shares of Propel Global closed unchanged at 10 sen on Thursday, with a market capitalisation of RM73.02 million.