KUALA LUMPUR (July 24): Catcha Digital Bhd said its Guidance Note 2 (GN2) status is expected to be lifted after the group raised RM29.7 million via a rights issue for growth and expansion.

The rights issue also marked the completion of the digital media and advertising group’s regularisation plan, said Catcha in a statement on Monday (July 24).

At the close of acceptance on July 14, Catcha had received valid acceptances and excess applications for 126.43 million rights shares, which accounted for 72.40% of the 174.64 million rights shares available for subscription, according to the company's filing with Bursa Malaysia on Monday.

This number of shares applied for was 102.77 million (or 58.85% of the total shares available) with excess applications making up 23.66 million shares (13.55% of the total shares available).

“In view that the total number of excess rights shares applied for was 23.66 million right shares, the board has decided to allot the excess rights shares to all the entitled shareholders and/or their renouncee(s)/transferee(s) (if applicable) who have applied for the excess rights shares in full,” the group said.

The rights shares are expected to be listed on July 31.

The rights issue was made on the basis of one right share for every one existing share, at an issue price of 23.5 sen per share, to raise RM41.04 million.

“We are extremely appreciative of our shareholders’ steadfast confidence and support over the past few years as the regularisation plan was carried out. After the completion of the regularisation plan and the upliftment of GN2 status, we can now devote our attention to building, growing and scaling the company to greater heights,” said Catcha chairman Patrick YKin Grove.

Chief executive officer Eric Tan added that with the completion of this fundraising exercise, the company is in a strong position to accelerate its growth plans and realise its vision to build the leading digital group in Southeast Asia.

“Our aim is to attract the best digital and software companies to join with us, consolidating our position as the industry leader in Southeast Asia thus creating sustainable value for all stakeholders,” Tan added.

The company, then known as Rev Asia Bhd, slipped into GN2 in August 2017 when it became a cash company following the sale of its then digital asset, Rev Asia Holdings Sdn Bhd, to Media Prima Bhd for RM105 million in 2017.

Shares in Catcha Digital closed two sen or 4.49% lower on Monday, giving the company a market capitalisation of RM114 million. Year-to-date, the stock has more than doubled from 19.5 sen on Jan 3.