KUALA LUMPUR (June 27): EVD Bhd’s application for the proposed special issue of 132.32 million shares, in order to comply with the Bumiputera equity condition set by regulators, has been approved by the Ministry of Investment, Trade and Industry (Miti).

KAF Investment Bank Bhd, on behalf of EVD, said the group received a letter from Miti on Tuesday (June 27), approving the proposed special issue.

“But [Miti] did not recognise all EVD’s existing Bumiputera shareholders as the approved Bumiputera shareholders,” said KAF, who is the advisor for the exercise.

In March, EVD announced that the exercise was part of its listing requirement to allocate 12.5% of its enlarged issued and paid-up share capital to Bumiputera investors recognised by Miti after the group achieved profit, or three years after the implementation of the regularisation plan, whichever is earlier.

The issued share capital of EVD is RM53.83 million, comprising 407.14 million shares, as well as some 2.33 billion redeemable convertible preference shares (RCPS) and 86.47 million warrants 2022/2029 of EVD.

EVD assumed the listing status of iDimension Consolidated Bhd, which slipped into Guidance Note 3 (GN3) status on Oct 29, 2018, after its external auditor Messrs BDO expressed an adverse opinion on its audited financial statements for the 18-month financial period ended June 30, 2018.

iDimension was lifted from the GN3 status on Friday (June 23), and as part of the regularisation plan, EVD was admitted in place of iDimension under the technology sector.

EVD posted a net profit of RM1.41 million for the first quarter ended March 31, 2023, on a revenue of RM17.99 million.

Shares of EVD were up half a sen or 3.23% to close at 16 sen on Tuesday, giving the ACE-Market listed group a market capitalisation of RM63.62 million.