Bursa Securities approves FSBM’s PN17 regularisation plan

 

FSBM Holdings fell under the PN17 classification in December 2019, and submitted its proposed regularisation plan on Oct 15, 2021.

PETALING JAYA: FSBM Holdings Bhd’s regularisation plan to exit its Practice Note 17 (PN17) status has finally been approved by Bursa Malaysia Securities Bhd (Bursa Securities), some 19 months after it first announced the plan in October 2021.

The information technology service and systems provider said its regularisation plan comprises a proposed capital reduction exercise, proposed shares issuance and proposed rights issue of shares with free warrants.

The proposed shares issuance relates to 60 million subscription shares which will be issued to Syed Zainal Abidin Syed Mohd Tahir, FSBM executive director Pang Kiew Kun and FSBM chief technology officer Low Kang Wei at a subscription price of eight sen per subscription share.

The proposed renounceable rights issue relates to 23.67 million rights shares on the basis of one rights share for every one existing FSBM share held, at an issue price of three sen per rights share, together with up to 118.33 million free warrants on the basis of one warrant for every two rights shares subscribed, held on an entitlement date to be determined later.

Since the announcement of the proposed regularisation plan on Oct 15, 2021, the group had expanded its team and been actively pitching for and securing new contracts, the statement said.

The proceeds from the fund-raising proposals will be utilised mainly for the expansion of the group’s existing IT services business and for working capital purposes.

“Upon completion of the proposed regularisation plan, the group will be able to return to profitability and meet the criteria to uplift itself from being classified as a PN17 entity,” it said. The group had fallen under the PN17 classification in December 2019.

FSBM was incorporated in 1984 as Talasco Computers Sdn Bhd. In 1991, it changed its name to Fujitsu Systems Business (Malaysia) Sdn Bhd and was subsequently listed on the then Second Board of the Kuala Lumpur Stock Exchange in 1994. It has since been transferred to the Main Market of Bursa Malaysia.

In 2001, the company diversified its business to sell non-Fujitsu products and services and extended its business activities outside of Malaysia, resulting in a change to its present name.

Shares of FSBM finished up five sen or 20% at 30 sen, valuing the group at RM53.33 million. - FMT