FSBM Holdings Berhad said its regularisation plan has been approved by Bursa Malaysia Securities Berhad which comprises a proposed capital reduction exercise, proposed shares issuance, and a proposed rights issue of shares with free warrants.
The proposed shares issuance relates to 60 million subscription shares which will be issued to Tan Sri Syed Zainal, Mr Pang Kiew Kun and Mr Low Kang Wei at a subscription price of RM0.08 per subscription share. The proposed renounceable rights issue relates to 236,659,300 rights shares on the basis of 1 rights share for every 1 existing FSBM Share held, at an issue price of RM0.03 per rights share, together with up to 118,329,650 free warrants on the basis of 1 warrant for every 2 rights shares subscribed, held on an entitlement date to be determined later.
Since the announcement of the proposed regularisation plan on 15 October 2021, the group had amongst others, expanded its team and been actively pitching for and securing new contracts. The proceeds from the aforementioned fundraising proposals will be utilised mainly for the expansion of the group’s existing IT services business and its working capital purposes.
FSBM said the proposed regularisation plan serves to regularise the financial condition of the group in order to address and uplift the PN17 status of the company. 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.