KUALA LUMPUR (Sept 22): Cuscapi Bhd (KL:CUSCAPI) has proposed a private placement of up to 94.49 million new shares to raise up to RM4.55 million for working capital, making it the second company linked to businessman Wong Thean Soon, better known as TS Wong, to announce a share placement this week.
In a filing with Bursa Malaysia on Tuesday, Cuscapi said about RM2.28 million of the proceeds will be used for operating expenses, including salaries, while another RM1.37 million will go towards payments to trade creditors such as hardware suppliers. The remaining funds will be used for utilities and rental expenses.
The company has not raised funds through an equity issue in the past 12 months.
Wong’s stake in Cuscapi came under pressure from margin calls in recent weeks before he sold nearly 11% of his stake through a direct business transaction. The sale brought in a new substantial shareholder, Tan Boon Seng.
Wong now holds a 2.5% stake in Cuscapi.
On Monday, another company linked to Wong, Excel Force MSC Bhd (KL:EFORCE), announced a private placement of new shares to raise up to RM10.98 million. The monies are earmarked for working capital and free up funds for a software project.
The Cuscapi placement shares will be priced at a discount of up to 10% to the company’s five-day volume-weighted average price (VWAP) before the relevant price-fixing date. Based on an illustrative issue price of five sen per share, the shares would be issued at a 9.42% discount to the five-day VWAP of 5.52 sen as at the latest practicable date.
The placement may be carried out in several tranches, with the timing, size and issue price of each tranche to be determined based on the company’s funding needs and prevailing market conditions.
Cuscapi said shareholders had approved a general mandate at its annual general meeting on June 24, 2026, allowing the company to issue up to 10% of its total issued shares, or 94.49 million shares.
The company said the private placement would provide a faster way to raise funds compared with options such as a rights issue while avoiding the interest and repayment obligations associated with debt financing. It would also enlarge Cuscapi’s capital base and provide greater financial flexibility.
Cuscapi’s net profit more than doubled to RM785,000 in the second quarter ended June 30, 2026, mainly due to lower income tax provisions, which fell to about a fifth of the RM1.5 million it paid a year earlier. Revenue rose 3% to RM7.55 million from RM7.32 million.
The company has about 1.7 million in cash as at June 30 and about RM5.7 million of digital assets. The digital assets are Zetrix tokens issued by Zetrix AI Bhd (KL:ZETRIX) it holds as inventory, which are valued based on market prices. It has no borrowings.
Wong is a substantial shareholder of Zetrix AI with a 6.191% direct interest and a 4.869% indirect stake in the company.
Cuscapi shares fell half a sen, or 7.69%, to six sen on Tuesday, valuing the company at RM56.7 million. Year-to-date the stock is down 45.45%.