TFP Solutions Berhad, in an announcement to Bursa Malaysia this evening, has proposed to make a private placement of up to 62,020,100 new ordinary shares in TFP, representing approximately 30% of the existing total number of issued shares in TFP (excluding 1,279,000 treasury shares).
In addition, the company is also proposing to issue up to 134,377,022 free warrants on the basis of 1 Warrant for every 2 TFP Shares held on an entitlement date to be determined later.
The issue price of the Placement Shares shall be determined and fixed by the Board at a later date, after the receipt of shareholders’ approval for the Proposed Private Placement. The Placement Shares will be priced at not more than 10% discount to the 5-day volume weighted average market price of TFP Shares immediately before the Price Fixing Date.
The announcement added: For illustrative purposes, based on an indicative issue price of RM0.063 per Placement Share, the issue price of the Placement Shares would represent a discount of RM0.0066 or approximately 9.48% to the 5D-VWAP of TFP Shares up to and including the LPD of RM0.0696. The Proposed Private Placement is expected to raise gross proceeds of up to RM3,907,266.
The company estimated that some RM3.712 million would be utilised as working capital for its financial technology (“fintech”) mobile product business plan.
It had been reported that TFP is optimistic about its OneCALL mobile fintech product.
To recap, the TFP Group, via its wholly-owned subsidiary MBP Solutions Sdn Bhd, had last year inked a Co-branding agreement with Tune Talk to launch the OneCALL mobile fintech product targeting the “un-banked” population throughout Malaysia.
The company believes that the “u-banked” population holds great potential for this product to be extremely successful. It estimated that some two million Malaysians, representing 8% of the country’s 24 million adults, do not have any bank account. Some 66% of foreign workers also do not have banking facilities.
OneCALL aims at addressing this market’s challenges including unique features such as remittance, virtual ATMs, game PINs, Lifestyle Tools, bill payments together with a B40 entrepreneur programme.
In addition, OneCALL subscribers would also enjoy Tune Talk’s mobile services such as approved voice, sms and/or data plan(s) together with various benefits such as Tune Talk Big Points, flight redemptions and travel promotions with AirAsia, reward programmes from Tune Talk’s partners, as well as personal insurance (Terms and conditions may apply to all these benefits).
Hence, for plantation, construction, mining and manufacturing companies together with restaurants dependent on foreign labour, TFP is able to incorporate its human resources management (HRM) and payroll system with eWallet into OneCALL.
TFP’s HRM and payroll solutions are already well-known for various functions such as scheduling of workers schedule, online leave system, claims management and issuing payroll statements. By integrating OneCALL into TFP’s existing solutions, the company aims to develop an e-wallet which will allow enterprises to directly deposit salaries to their employees’ e-wallets.