Edelteq Holdings Bhd (KL:EDELTEQ) plans another private placement seeking up to RM26.75 million, just over a year after its last one.
The engineering services provider disclosed the Edelteq private placement in a Bursa filing on Monday, Oct 12.
How Is the Edelteq Private Placement Priced?
The placement involves up to 90.08 million shares, equal to 10% of the group’s issued shares under the maximum scenario. That assumes all outstanding warrants and ESOS options are exercised before the placement.
At an illustrative 29.7 sen per share, the price is about 9.75% lower than the five-day volume-weighted average market price of 32.91 sen up to Sept 30. The third-party investors have yet to be identified.
Where Will Edelteq’s RM26.75 Million Go?
Edelteq plans to use RM20.4 million to repay bank borrowings, RM6.26 million for working capital in its automated test equipment (ATE) segment, and RM100,000 for placement expenses.
Total borrowings stood at RM23.3 million as at Sept 30. Of that, RM20.4 million comprises revolving credit facilities, mainly used to buy input materials for the integrated circuit assembly and test consumable (C&T) segment.
Repaying those revolving credit facilities could save up to RM955,000 in annual interest.
Will Edelteq’s Gearing Fall to 0.34 Times?
Gearing is expected to drop to 0.34 times from 1.13 times at end-Dec 2025. That projection assumes completion of the placement and exercise of all warrants and ESOS options.
The ATE working capital will pay suppliers and creditors for wafer-handling robots, wafer load ports and precision motion stage systems.
How Does This Compare With Edelteq’s Last Placement?
The previous placement completed on Oct 10 last year, raising gross proceeds of RM21.12 million at 39.66 sen per share.
Those funds repaid bank borrowings and financed working capital for the C&T segment. This round targets the ATE segment instead, and the illustrative price of 29.7 sen sits below the 39.66 sen of the last round.
Where Does Edelteq’s Share Price Stand After the Rally?
The share price jumped nearly 30% in less than two weeks, from 34 sen on Sept 30. It closed 3 sen, or 6.45%, lower at 43.5 sen on Monday, giving a market capitalisation of RM255 million.
The illustrative placement price of 29.7 sen sits 13.8 sen below Monday’s close. Stocks like this are worth monitoring for how the placement is priced against the market.
When Will the Edelteq Placement Be Completed?
The placement needs approval from Bursa Malaysia Securities for the listing and quotation of the new shares, plus any other approvals if required. Completion is expected by the first quarter of 2027.
Key Takeaways
- Up to RM26.75 million to be raised at an illustrative 29.7 sen per share, a discount of about 9.75% to the five-day VWAP.
- RM20.4 million goes to repaying bank borrowings, with gearing targeted to fall from 1.13 times to 0.34 times.
- Repayment could save up to RM955,000 in annual interest.
- The last placement raised RM21.12 million at 39.66 sen per share for the C&T segment.
- EDELTEQ closed at 43.5 sen on Monday, with a market capitalisation of RM255 million.
For a broader view on tracking stocks like this, read our AI Stock Analysis for Malaysians guide.
This article is for general information only and is not a recommendation to buy, sell or hold any shares. Figures are taken from Edelteq’s Bursa filing as reported by The Star. Always do your own research before making any decision on KL:EDELTEQ.
Frequently Asked Questions
How much is the Edelteq private placement?
Edelteq plans a private placement to raise up to RM26.75 million. It involves up to 90.08 million shares at an illustrative price of 29.7 sen each, equal to 10% of issued shares.
What will Edelteq use the private placement proceeds for?
RM20.4 million will repay bank borrowings, RM6.26 million goes to working capital for the ATE segment, and RM100,000 covers placement expenses.
When is the Edelteq private placement expected to be completed?
The placement is expected to be completed by the first quarter of 2027. It is subject to Bursa Malaysia Securities’ approval for the listing and quotation of the new shares.
How much will Edelteq’s gearing ratio drop?
Gearing is expected to fall to 0.34 times from 1.13 times at end-Dec 2025. This assumes completion of the placement and exercise of all outstanding warrants and ESOS options.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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