KUALA LUMPUR (June 17): MQ Technology Bhd has proposed a private placement of up to 182.81 million new shares, representing not more than 20% of its share capital, to raise up to RM10.97 million.

The shares will be placed out to independent third-party investors to be identified later, MQ Tech said in a bourse filing.

The issue price will not be at more than a 10% discount to the five-day volume weighted average of MQ Tech shares immediately before the price fixing date, it said.

Based on an indicative issue price of six sen, the placement is expected to raise gross proceeds of up to RM8.77 million and RM10.97 million under the minimum scenario and maximum scenario, respectively, it added.

MQ Tech said the proceeds from the placement will be used to renovate its factory, repay unsecured loan, and for working capital.

The group expects the placement to be completed within six months from the date of Bursa Securities’ approval.

MQ Tech's share price closed 0.5 sen or 7.69% higher at seven sen, valuing the group at RM51.14 million.