KUALA LUMPUR (Oct 6): Waja Konsortium Bhd, formerly known as ConnectCount Holdings Bhd, has proposed to undertake a private placement of up to 30% of its issued shares to raise up to RM31.67 million, mainly to fund its construction business and for working capital.

The last time it conducted a private placement to raise funds was in April 2021. That placement, also involving up to 30% of its issued shares, was completed in May 2022 and successfully raised RM25.12 million, also to fund its construction business projects and for working capital.

In a bourse filing on Friday, the construction company said the new private placement entails the issuance of up to 395.9 million shares to independent third-party investors to be identified later, at an issue price to be fixed.

The expected proceeds of RM31.67 million is based on an illustrative issue price of eight sen per placement share — which is a discount of 9.50% to the five-day volume-weighted average market price of Waja shares up to and including Sept 29 of 8.84 sen. 

From the proceeds, the group plans to use RM25 million to fund its existing construction projects and RM6.31 million for working capital. The balance RM360,000 will be used to defray expenses related to the private placement.

As at Sept 29, the group’s construction order book stood at RM408.1 million, of which approximately RM320.4 million remains unbilled.

The proposed private placement is expected to be completed by the first quarter of 2024.

Shares of Waja closed up 0.5 sen or 5.88% to nine sen, giving the group a market capitalisation of RM100 million.