Nova MSC to raise RM7.99 million via private placement

PETALING JAYA: Nova MSC Bhd has proposed a private placement exercise to raise up to RM7.99 million, mainly to finance its new and existing projects for information technology (IT) and maintenance contracts.
In a filing with Bursa Malaysia, the group said it plans to issue up to 88.82 million new shares, representing 10% of the issued shares of the company to third party investors to be identified later.
The group said the issue price will be determined later, but the indicative price is 9 sen per placement share. The counter closed 5.88% higher at 9 sen on Friday with 12.4 million shares done.
Nova MSC said bulk of the proceeds will be used for the purchase of hardware and software, which mainly consist of system hardware equipment, control and instrumentation devices, application software and other computer related products.
Recently the group was awarded by Singapore's Urban Redevelopment Authority to upgrade and provide maintenance support of Development Application Exchange System with a contract sum of about RM14.8 million.
As at June 30, 2017, its order book stood at RM57.1 million.
The proposed private placement is expected to be completed by the fourth quarter of 2017.