Kumpulan Jetson to raise RM7.78 million through private placement

PETALING JAYA: Kumpulan Jetson Bhd proposes to undertake a private placement exercise to raise up to RM7.78 million for working capital.
In a filing with the stock exchange, the company said the private placement entails the issuance of up to 22.22 million new shares to independent third party investors, which represents about 10% of its total enlarged number of issued shares.
The maximum gross proceeds of RM7.78 million is based on an indicative issue price of 35 sen per placement share, an 8.85% discount against its five-day volume weighted average price of 38.4 sen.
Kumpulan Jetson said the private placement will enable the company to raise funds without incurring interest cost and further strengthen its financial position.
The private placement is expected to contribute to the company’s future earnings due to the availability of additional working capital, but its earnings per share is expected to be diluted as a result of the increase in the number of shares.