PETALING JAYA: Bioalpha Holdings Bhd has proposed a private placement entailing the issuance of up to 109.9 million new ordinary shares, representing up to 10% of Bioalpha’s enlarged number of issued shares.
The placement shares will be issued to third-party investors at an issue price to be determined and announced at a later date. Assuming full subscription of the placement shares at an indicative issue price of 12.9 sen per share, the proposed private placement exercise is expected to raise gross proceeds of up to RM14.2 million.
Of the potential proceeds, Bioalpha has allocated up to RM14.1 million to explore growth opportunities, including the investment and expansion of the group’s existing business, and complementary businesses to improve the digitalisation of the business.
Managing director William Hon said the additional capital injection from the proposed exercise fortifies the group’s financial position and provides additional capacity to execute its growth strategies.
“We’ve always been on the lookout for M&A opportunities which are earnings-accretive and complementary to our business. Given the economic environment, this is an opportune time to explore these prospects,” he said.
