ManagePay shelves private placement, looking at other fundraising plans

KUALA LUMPUR (Jan 4): ManagePay Systems Bhd has decided to shelve its private placement exercise, which involves 30% of its share base, more than one year after the electronic payment solutions provider proposed the fundraising exercise.

The group intends to explore fundraising avenues that better suit its business needs after “due deliberation and careful consideration” of its funding requirements.

“Thus, the company has not sought for a further extension of time to implement the placement, which expires on Jan 4, 2023. As such, the placement is deemed completed upon the expiry of the extension of time,” said ManagePay in a Bursa Malaysia filing on Wednesday (Jan 4).

Bursa Malaysia had on July 20 last year approved the group’s application for a six-month extension until Jan 4 to implement the placement.

In October 2021, ManagePay proposed placing up to 294.63 million shares, equivalent to 30% of its share base of 981.76 million shares assuming all employees’ share option scheme options are granted and exercised.

The placement did not reach the price-fixing stage yet, but the group’s circular for this corporate exercise proposed to price these new shares at up to 10% discount to the five-day volume weighted average price but no less than 30 sen per share.

Based on an illustrative price of 30 sen per placement share, the group could raise up to RM88.36 million through this corporate exercise.

Shares of ManagePay, which fell 41.5% last year, closed unchanged at 11.5 sen on Wednesday, giving it a market capitalisation of RM99.06 million.