Green Packet plans 1-for-5 rights issue to raise up to RM52.57m

PETALING JAYA: Green Packet Bhd proposes a renounceable rights issue exercise to raise up to RM52.57 million for its business expansion plans.

The group told Bursa Malaysia that the rights issue entails an issuance of up to 150.2 million rights shares on the basis of one rights share for every five existing shares held, together with up to 450.61 million warrants on the basis of three warrants for every one rights share subscribed.

Based on an indicative issue price of 35 sen per rights share, the gross proceeds from the proposed rights issue are expected to be as much as RM52.57 million.

Proceeds raised will be used for the purchase of trade equipment, future viable investment, working capital for media and digital services, fintech solutions and general working capital.

Meanwhile, assuming the full exercise of warrants, Green Packet is expected to raise up to RM157.71 million. The warrants may be exercised at any time within five years from the issuance date.

The group said apart from expanding the business organically, it may also expand inorganically via mergers and acquisitions of businesses or investments that will be in the same, similar or complementary industry to that of its existing business.

It noted that the proposed rights issue with warrants will strengthen the group's financial position with enhanced shareholders' funds and reduced gearing level as compared with bank borrowings.

Green Packet shares closed 6 sen or 17.6% higher at 40 sen on 3.13 million shares done.

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