KUALA LUMPUR (Sept 23): Edelteq Holdings Bhd (KL:EDELTEQ) plans to raise up to RM19.73 million through a private placement of up to 10% of its shares, to be used for working capital and to repay bank borrowings.
According to a bourse filing from the engineering support services provider, the proposed placement could involve the issuance of up to 53.25 million new shares, with the exact issue price to be determined later. The shares will be placed with third-party investors who have yet to be identified.
Based on an illustrative issue price of 37.05 sen per share, the company expects to raise RM19.73 million from the exercise, of which RM14.67 million will be set aside for working capital for its integrated circuit assembly and test consumable (C&T) segment. This is needed to support the segment's growth over the next 12 months, it said.
Of the balance, RM5 million will be used to repay bank borrowings, with the remainder to fund expenses related to the placement.
The proposed placement, subject to regulatory approvals, is expected to be completed by the fourth quarter of 2025. UOBKH has been appointed the adviser and placement agent for the exercise.
Last month, the group reported a net profit of RM3.23 million for the second quarter ended June 30, 2025 (2QFY2025), up from RM801,000 a year ago, as revenue jumped to RM92.54 million from RM5.88 million.
The substantial revenue growth was primarily driven by the value-add assembly and testing services within its C&T segment, which contributed approximately 98.2% to the group's revenue for 2QFY2025.
The strong quarterly performance boosted its six-month net profit to RM5.75 million, more than double the RM2.56 million recorded in the first half of fiscal year 2024 (6MFY2024). Cumulative revenue came to RM183.7 million, over 13 times higher than RM13.74 million in 6MFY2023.
As of June 30, 2025, the group's cash and cash equivalents stood at RM25.93 million.
On Tuesday, Edelteq's share price slipped half a sen to close at 43.5 sen, giving the group a market capitalisation of RM232 million.