KUALA LUMPUR, Feb 23 — CTOS Digital Bhd has finalised the issue price of its proposed primary placement exercise at RM1.58 per share to raise a total of RM173.8 million in proceeds for the group.

In a statement today, the group said the proceeds of RM173.8 million would partially fund its RM205.8 million acquisition of a 49 per cent stake in fintech specialist Juris Technologies (JurisTech), with the balance funded by bank borrowings.

The acquisition is slated for completion in the first quarter of 2022.

"The board decided to only raise RM173.8 million through the proposed placement with a view of optimising the amount of equity and debt raised to fund the acquisitions and to defray the estimated expenses related to the proposed placement. The proposed placement was oversubscribed,” said CTOS Digital.

Under the proposed primary placement exercise, the group would issue a total of 110 million new shares representing five per cent of the total number of issued CTOS Digital shares.

Upon the listing of the new shares in early March 2022, CTOS Digital’s issued share capital would enlarge from 2.20 billion shares to 2.31 billion shares.

Following the strong demand for this placement, private equity firm Creador, via Inodes Ltd, placed 185 million shares it owns in CTOS Digital at the same price of RM1.58, its first placement since CTOS Digital’s initial public offering in July last year.

This pares Inodes’ shareholding in CTOS Digital to 30.1 per cent from 40.0 per cent post-issuance of the primary placement. — Bernama