T7 Global to raise RM15mil via private placement

PETALING JAYA: Oil and gas services provider T7 Global Bhd has proposed to raise a maximum of RM15.5mil via a private placement of up to 10% of its enlarged issued shares to help fund the company’s projects.

The company told Bursa Malaysia that the proposed exercise would entail a total of 379.07 million T7 Global shares as at Oct 31, 2017, being the latest practicable date (LPD). This is excluding treasury shares amounting to about 2.48 million. T7 Global said it had obtained shareholders’ approval at an AGM on May 17, 2017 to undertake the proposed private placement.

“We are also able to grant up to 38.15 million employee share option scheme (ESOS) options that can be exercised into 38.15 million T7 Global shares. This is assuming all the 2.48 million treasury shares are resold in the open market,” T7 Global said.

It explained that a total of up to 41.97 million new T7 Global shares, which represent 10% of its enlarged shares, may be issued should the 2.48 million treasury shares be resold in the open market, and the 38.15 million ESOS options be granted and exercised prior to the implementation of the proposed exercise.

Aside from raising additional funds from the capital market without incurring interest costs, T7 Global noted that the exercise would help boost the size and strength of its shareholders’ funds.

The placement shares will be issued at a price of not more than a 10% discount to the five-day volume-weighted average market price (VWAMP) of T7 Global shares immediately preceding the price-fixing date. “For illustrative purposes, the indicative issue price of placement shares is assumed at 37 sen per placement share, which represents a discount of approximately 8.42% to the five-day VWAMP of T7 Global shares up to and including the LPD of RM0.404 per T7 Global share,” T7 Global noted.