Binasat Communications proposes private placement to fund contracts

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Binasat proposes private placement

Highlights

Binasat Communications Bhd proposes a private placement of up to 60.43 million shares, with the price yet to be determined and no discount exceeding 10% to the five-day average market price.
The company will allocate RM4.08 million of placement proceeds and RM21.67 million in refund funds to finance existing and future contracts.
The cancellation of the hotel suite acquisition paves the way for the recovery of RM32.19 million in funds, strengthening the company's operational funding resources.

This article was translated from the original. Read the original version by our correspondent here.

Placement details and funding structure

As reported by The Edge Malaysia, Binasat Communications Bhd is proposing a private placement of up to 60.43 million shares to as-yet unidentified third-party investors, at a price to be determined later. The company said in a stock exchange filing on Tuesday that the placement may be implemented in several tranches.

Binasat said the placement shares will not be priced at a discount exceeding 10% to the five-day volume-weighted average market price of the shares immediately preceding the pricing date. On Tuesday, Binasat shares closed half a sen higher, or 6.67%, at eight sen, giving it a market capitalisation of RM48.3 million.

The company has also allocated an estimated RM4.08 million of the gross proceeds from the proposed private placement to partly fund existing and future contracts. In addition, Binasat plans to use RM21.67 million of the refund funds for the same purpose, strengthening its operational funding resources.

Impact of acquisition cancellation and fund reallocation

In the same filing, Binasat also proposed changes to the use of proceeds raised from an earlier private placement involving 128.14 million shares, which was completed in September 2025. The changes allow the company to reallocate funds previously earmarked for the acquisition of 241 fully furnished hotel suite units at Empire City, Damansara Perdana, from Cosmopolitan Avenue Sdn Bhd.

The move follows the cancellation of the acquisition on 12 August this year. The cancellation paves the way for Binasat to receive a RM32.19 million refund, comprising RM29.19 million paid for the acquisition and RM3 million for costs and expenses.

Overall, the proposed new placement and restructuring of fund usage reflect the company's focus on financing its core contracts. For Malaysia's corporate sector, the move shows that smaller listed companies continue to use equity markets and internal capital adjustments to support project requirements and workflow.

In our earlier report on IJM Corporation's RM1.23 billion contract to build AT&S semiconductor manufacturing facilities at Kulim Hi-Tech Park, we detailed the scope of the design-and-build project, covering production buildings, central utilities and wastewater treatment facilities, as well as the expected completion timeline. We also discussed how the award strengthens IJM's order book and supports AT&S's operational expansion, in line with Malaysia's push to strengthen its value-added E&E ecosystem.

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