Bursa approves FSBM’s regularisation plan

KUALA LUMPUR (April 11): Bursa Malaysia Securities Bhd has approved FSBM Holdings Bhd’s proposed regularisation plan, about 19 months after the Practice Note 17 (PN17) company first proposed its plan on Oct 15, 2021.

In a filing on Tuesday, the information technology service and systems provider said its regularisation plan comprises a proposed capital reduction exercise, proposed shares issuance, and proposed rights issue of shares with free warrants.

The proposed shares issuance relates to 60 million subscription shares that will be issued at a subscription price of eight sen per subscription share to its subscribers, namely Tan Sri Syed Zainal Abidin Syed Mohd Tahir, FSBM executive director Pang Kiew Kun and FSBM chief technology officer Low Kang Wei.

Meanwhile, the proposed renounceable rights issue relates to 236.65 million rights shares on the basis of one rights share for every one existing FSBM share held at an issue price of three sen per rights share, together with up to 118.32 million free warrants on the basis of one warrant for every two rights shares subscribed held on an entitlement date to be determined later.

“Since the announcement of the proposed regularisation plan on Oct 15, 2021, the group had amongst others, expanded its team and been actively pitching for and securing new contracts,” it said.

FSBM said that the proceeds from the proposed fundraising exercises will be used mainly for the expansion of the group’s existing IT services business and its working capital purposes.

“Upon completion of the proposed regularisation plan, the group will be able to return to profitability and meet the criteria to uplift itself from being classified as a PN17 entity,” it added.

Share in FSBM finished up five sen or 20% at 30 sen, valuing the group RM53.33 million.