Seni Jaya Corporation Berhad (KLSE:SJC) is planning a proposed private placement to issue up to 10% of its existing shares to third-party investors. This move follows approval from shareholders and a waiver of their pre-emptive rights. The placement could result in up to 29.12 million new shares being issued.

The issue price for the new shares will be determined based on a discount of up to 10% from the five-day volume-weighted average price (VWAP) of SJC shares. Illustratively, at an assumed price of 46.6 sen per placement share, the private placement could raise up to MYR 13.57 million under the maximum scenario. The proceeds from this placement will be allocated to several key purposes, including funding the B-Star Verse exhibition project (MYR 5.93 million), LRT Ampang Line project expenses (MYR 3.50 million), upgrading static billboards to digital ones (MYR 3.2 million), and the balance for general working capital as well covering the estimated expenses related to the placement.

The move is intended to fortify SJC's financial position and expedite capital-raising without incurring interest expenses. It aligns with the company's successful business transformation and aims to support various promising projects. The company appears optimistic about its future prospects.

Kenanga Investment Bank Berhad has been appointed as the adviser and placement agent for the proposed private placement, with completion expected by the fourth quarter of 2023.