XOX proposes private placement to raise RM9.37 million

PETALING JAYA: Mobile virtual network operator XOX Bhd proposes a private placement to raise RM9.37 million for its branding and marketing expenses.

In a filing with Bursa Malaysia, the group said based on an illustrative issue price of 11 sen per placement share and issuance of up to 85.18 million placement shares, the exercise is expected to generate gross proceeds of up to RM9.37 million.

Of the proceeds raised, RM9.22 million has been allocated for branding and marketing expenses and the rest for the proposed private placement expenses.

"The board is of the view that the branding, marketing and pricing strategies above will be able to garner more brand awareness from consumers and increase its subscriber base and market share," it noted.

XOX said its earnings per share is expected to be diluted as a result of the increase in the number of shares pursuant to the issuance of placement shares.

Nonetheless, it said the proposed private placement is expected to contribute positively to its earnings. It is expected to be completed by the fourth quarter of 2017.

XOX closed unchanged at 10.5 sen, with some 3.85 million units traded. It has a market capitalisation of RM89.44 million.