KUALA LUMPUR: FSBM Holdings Bhd says its regularisation plan has been approved by Bursa Malaysia.
The regularisation comprises a proposed capital reduction exercise, a shares issuance and a rights issue with free warrants.
The proposed shares issuance relates to 60 million subscription shares which will be issued to Tan Sri Syed Zainal Abidin Syed Mohd Tahir, Pang Kiew Kun and Low Kang Wei at a subscription price of eight sen each.
The proposed renounceable rights issue relates to 236.66 million shares on the basis of one rights share for every one existing share held, at an issue price of three per rights share, together with up to 118.33 million free warrants on the basis of one warrant for every two rights shares subscribed.
Since the announcement of the proposed regularisation plan on Oct 15 2021, FSBM had among others, expanded its team and been actively pitching for and securing new contracts.
The proceeds from the fund raising proposals will be utilised mainly for the expansion of the company's existing IT services business and its working capital purposes.
"The regularisation plan serves to regularise the financial condition of the group in order to address and uplift the PN17 (Practice Note 17) 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," FSBM said.