MyEG proposes to raise up to RM407m via private placement

PETALING JAYA: My EG Services Bhd is proposing a private placement of up to 220 million new shares, representing about 6.2% at an illustrative issue price of RM1.85 apiece, to raise up gross proceeds of up to RM407 million, it said in a Bursa filing today.

The proceeds raised will go towards the development of foreign workers hostels under the foreign workers accommodation programme, development of healthcare services, the purchase of fixed assets and related solutions for the e-government concession services, working capital and estimated expenses for the proposed placement.

“By providing foreign workers’ accommodation, the group will be able to further establish itself as a one-stop solutions centre for foreign workers given their range of e-government platform offerings and related services, thus allowing the group to cross-sell its offerings and services to the foreign workers and in turn derive potential additional revenue,” it said.

In addition, following the group’s recent entry into the healthcare sector via various signed agreements, MyEG said it sees the sees the need for the establishment of a system to manage the logistics and administrative challenges for Covid-19 testing and vaccination to ensure effective implementation in the ongoing battle against the pandemic.

At the same time, for its e-government concession services, MyEG said the pandemic presents new opportunities for it to introduce innovative online services.

The proposed placement is expected to be completed in the fourth quarter this year.