KUALA LUMPUR (April 30): Green Packet Bhd is undertaking a private placement of 598.48 million shares representing 30% of its issued shares for 3.2 sen apiece or RM19.15 million.

The placement shares will be subscribed by six individuals under subscription agreements signed with Green Packet, the company said in its filing.

Funds from the placement will be used to fund its joint venture (JV) to collaborate with the Sri Lankan government on integrated tourism digital platform in that country (RM10 million); money lending business (RM6 million), and working capital (RM2.86 million).

On the Sri Lanka project, Green Packet’s unit Kiplepay is providing an e-wallet for the digital platform.

It was first awarded in 2019 but was delayed due to the pandemic. Green Packet said its JV partner Tass Tech International Sdn Bhd “has recommenced negotiation” with the Sri Lankan Tourism Development Authority.

“Using this opportunity, Kiplepay will also be venturing into the Sri Lankan domestic market to provide a payment gateway solution [payments service provider], e-wallet services, inbound remittances, and money lending services for the citizens and residents of Sri Lanka,” Green Packet said.

“Money changing on the other hand will be crucial for Kiplepay to start a multi-currency wallet. This will then enable Kiplepay to target travellers and students in Malaysia,” added Green Packet, who is planning to obtain a remittance and money changing licence via Kiplepay.

After six straight years of losses, Green Packet has been profitable for the nine months ended Dec 31, 2023 (9MFY2024) with net profit of RM4.45 million on revenue of RM598.23 million.

The group has several reporting segments, including digital devices and infrastructure, which provides systems like smart parking and visitor management systems for property management.

Other segments are communications, which operates carrier neutral wholesaler for international voice, data and application-to-person messaging via Green Packet Global; as well as the loss-making digital and financial services segment under Kiplepay.

Shares of Green Packet closed unchanged at 4.5 sen, giving it a market capitalisation of RM81.11 million. The counter is up half a sen this year.