KUALA LUMPUR (May 5): Dagang Nexchange Bhd (DNeX) expects to raise up to RM641.96 million through its proposed issuance of new placement shares representing 30% of its existing number of issued shares.

The proposed private placement is based on an indicative issue price of 72 sen per share, the information technology and trade facilitation services company said in a circular to shareholders today.

When DNeX first announced the proposed placement on March 31, it had used an indicative issue price of 78.6 sen per placement share.

The company said all the proceeds, other than RM20,000 for working capital and RM3,500 for estimated placement-related expenses, would be used for acquisitions and/or other business expansion or investment.

“Such proceeds are expected to enable the group to retain an adequate cash level and flexibility in respect of financial allocations for its operational requirements and short-term obligations and liabilities,” it said.

DNeX added that the proceeds would also allow the group to carry out its day-to-day operations in a more efficient and timely manner.