GPacket ... Oct 2008

Green Packet Bhd plans to raise as much as RM58.46mil from the proposed placement of 70.43 million new shares at 83 sen each.

It would propose to place out the new shares, or 20% of its share capital, to Green Packet Holdings Ltd, OSK Technology Ventures Sdn Bhd and independent third party investors. The indicative allocations of the placement shares, based on the maximum scenario, was 30.61 million new shares to Green Packet Holdings, 14.49 million shares to OSK Technology ventures and 25.32 million to independent investors.

It proposed to implement the placement exercise within six months from the Securities Commission’s approval.

The corporate exercise would enable it to raise funds quickly for its working capital and strengthen its balance sheet without incurring interest costs, as compared with bank borrowings.

The funds to be raised would be used as additional working capital for its capital expenditure and operating expenses including the deployment of the wireless Internet broadband infrastructure in Malaysia and overseas markets.