Kronologi to raise RM22.8m to finance expansion plans

PETALING JAYA: Kronologi Asia Bhd aims to raise about RM22.84 million from a proposed private placement to expand its managed services and grow its presence in existing markets and regions.
In a filing with Bursa Malaysia today, the group said it is proposing to issue up to 36.26 million new ordinary shares representing about 10% of its total shares in issue as at Aug 1, being the latest practicable date (LPD).
For illustrative purposes, the five-day volume weighted average market price (VWAP) of Kronologi shares up to and including the LPD is 69.36 sen per share, representing a discount of 9.17% to the five-day VWAP.
Based on the assumed price of 69.36 sen, the proposed private placement will gross proceeds of up to RM22.84 million, of which RM10 million will be used for managed services cum transnational infrastructure equipment.
As part of its strategy to accelerate market penetration, it intends to expand its managed services by continuing with the development and offering of managed services cum transnational infrastructure for storage solutions in the Asian region.
Another RM8 million will be used for future business development and expansion in existing markets and regions, especially Hong Kong and Taiwan, while the remaining RM4.32 million will be used for working capital and RM520,000 for estimated expenses in relation to the proposed private placement.
Kronologi’s share price fell 0.71% or half sen to close at 70 sen today with a total of 13.10 million shares traded.