Also proposes a private placement exercise to fuel its growth plans
Kuala Lumpur, 27 October 2021 –Main Market-listed leading provider of outdoor advertising services, Seni Jaya Corporation Berhad (“Seni Jaya” or the “Group”) (“盛艺集团”) today announced a proposed private placement exercise involving the issuance of up to 14.56 million new ordinary shares (“Placement Shares”), subject to the issuance of the Placement Shares not exceeding 20% of the Group’s total number of issued shares (“Proposed Private Placement”). Following this, the Group has also proposed to undertake a bonus issue of up to 262.08 million new ordinary shares in Seni Jaya on the basis of 3 bonus shares for every 1 Seni Jaya share held on an entitlement date to be determined and announced later (“Proposed Bonus Issue of Shares”) (collectively, the “Proposals”).
Chief Executive Officer (“CEO”) of Seni Jaya, Mr. Cheah See Heong (“Jeff Cheah”) (“谢诗峰”) said, “The Group is currently undergoing a three-year business transformation by enlarging our portfolio with more technology or digital-centric products to offer comprehensive solutions. This comprises static and digital billboards, programmatic digital out-of-home (“pDOOH”), mobile light emitting diodes (“LEDs”), ambient and airport media. We have made substantial progress in our transformation journey thus far in our first year, and the Group continues to be excited by the potential that lies ahead of us.”
“As part of our transformation blueprint, there are other growth strategies in the pipeline as well. Seni Jaya plans to enhance our existing advertising services via the business acquisition of out-of-home or OOH project or concession, which would enable us to improve our overall financial performance. With the anticipated growth in outdoor advertising expenditure (“ADEX”), we have the opportunity to embrace a wider audience diversity and expand our market share, further strengthening our position. The bulk of the proceeds to be raised from the Proposed Private Placement have been allocated to this initiative.”
“Besides this, the Group also intends to expand into a new business category. We will deploy LEDs advertising media across 200 outlets or locations across Peninsular Malaysia within the next 18 months. This complements Seni Jaya’s existing business and in turn, solidifying our position as a comprehensive advertising solutions provider. All in all, our growth plans remain our key focal point going forward as we seize the opportunities arising from the advertising industry, especially in the OOH and digital advertising segments.”
“On the other hand, the Proposed Bonus Issue of Shares is an avenue for us to reward our shareholders as we progress forward with our transformation journey. It is an expression of gratitude to all our shareholders for their patience and unwavering support all this while. Moreover, this is expected to improve the marketability and trading liquidity of our shares by encouraging greater participation by investors, potentially leading to broadening of our shareholder base,” Jeff Cheah concluded.
Seni Jaya intends to implement the Proposed Private Placement before the implementation of the Proposed Bonus Issue of Shares. Nevertheless, in the event that the Group is unable to identify placees to subscribe for the Placement Shares, the Proposed Private Placement may be implemented after the implementation of the Proposed Bonus Issue of Shares.
The up to 14.56 million Placement Shares shall be placed out to third-party investors at an issue price to be determined and announced later. The issue price would be based on a discount of not more than 10% to the volume weighted average market price of Seni Jaya shares for the 5 market days (“5D-VWAMP”) up to and including the last trading day immediately preceding the price-fixing date. At an indicative price of RM2.3336 per Placement Share, the Proposed Private Placement is expected to raise gross proceeds of up to RM33.98 million under the maximum scenario, which assumes all warrants are exercised prior to the exercise. This will be utilized for OOH project or concession-based business acquisition, new business category expansion relating to LED advertising media and working capital needs.
The Proposals are expected to be completed by the first quarter of 2022 barring any unforeseen circumstances and subject to all required approvals being obtained.