Bursa greenlights the listing of 855 million new Fintec shares

TheEdge Fri, Aug 27, 2021 11:58pm - 2 years View Original


KUALA LUMPUR (Aug 27): Bursa Malaysia has granted its approval for the listing of 855.13 million new shares that Fintec Global Bhd will issue for its proposed private placement.

The share placement of 855.13 million units at 2.25 sen per share representing 20% of the company’s total number of issued shares.

This is to raise RM19.2 million fresh capital to build a glove factory in Chemor, Perak, where AT Systematization Bhd’s glove manufacturing plant is located. Fintec holds a 9.19% stake in AT Systematization.

Upon completion of the latest share placement, Fintec’s enlarged share capital will balloon to 5.13 billion shares,  almost seven times more than 745.56 million as at January 2020.

This is the third share placement at Fintec in less than two years, plus a rights issue of 1.43 billion at eight sen per share.

Fintec completed the one-for-one rights issue exercise in December last year. Prior to the cash call, the company undertook a share placement of 82.11 million shares, raising a total of RM2.96 million for working capital purposes in April last year.

In the following month, Fintec announced another private placement of 282.14 million shares, fixed at an issue price of 5.35 sen for the first tranche of 100 million shares and 7.1 sen for the second tranche comprising 182.14 million shares.

Fintec’s share price has been on decline after it reached the peak of 18 sen in September last year from the low of 2.5 sen in April. The stock closed at two sen, giving it a market capitalization of RM88 million.    

Consequently, the latest share placement exercise is also priced at a lower level.

Besides AT Systematization, Fintec also owns a 19.17% stake in Seacera Group Bhd and a 3.28% stake in VSolar Group Bhd.

It also controls 25.9% equity interest in Focus Dynamics Group Bhd, which has emerged as the largest shareholder of Green Ocean Corp Bhd that has ventured into glove manufacturing too.

Coincidentally, Fintec’s subsidiary Eco-Sponge Sdn Bhd (ECS) has signed a collaborative agreement with Green Ocean Corp Bhd’s unit, Ace Edible Oil Industries Sdn Bhd (AEOI).

Under this collaboration agreement, Green Ocean will supply biodiesel and biofuel related products to potential customers, as well as customers procured by Fintec.

Fintec has changed its financial year end to June 30, from March 31 previously.

The company posted a net profit of RM720.5 million in the financial quarter ended Sept 30, 2020 during the penny stock rally last year.

However, Fintec posted a net loss of RM143.78 million for the quarter ended March 31, 2021 compared to a net profit of RM54.03 million in the January-March period a year ago. Revenue was flat at RM6.27 million compared with RM6.24 million.

The group attributed the decrease in profit to the “mark-to-market loss in the group's long term marketable securities.”

For the cumulative 12 months ended March 31, 2021, Fintec net profit came in at RM666.12 million, nearly 194% higher against RM226.69 million recorded in the previous Jan to Dec period, driven by gains in its portfolio investments.

Twelve-month revenue, however, soared to RM93.10 million from RM20.42 million.

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