In a strategic move aimed at fueling expansion and fortifying its financial position, VCI Global Limited declared today the pricing details of a public offering involving 2,200,000 ordinary shares. The offering also encompasses Series A warrants to purchase up to 2,200,000 ordinary shares and Series B warrants to acquire up to 2,200,000 ordinary shares. The combined offering price is set at $1.25 per ordinary share, along with the associated Series Warrants. The Series Warrants, exercisable at $1.25 per share, will be immediately available upon issuance. The Series A Warrants are slated to expire five years from the initial exercise date, while the Series B Warrants will expire eighteen months following the initial exercise date.
Anticipated to conclude around January 17, 2024, contingent upon customary closing conditions, the VCI Global public offering has already made waves in the market. Following the announcement, VCI Global’s stock experienced a surge, opening trading at $1.00 on Friday. This marked a notable shift from the previous Thursday’s closing session at $1.56. Acting as the exclusive placement agent for the offering is StockBlock Securities LLC.
At the time of this publication, VCI Global Ltd stock (VCIG) has witnessed a decline.
VCI Global Ltd
Current Price: $1.01
Change : -0.55
Change (%): (-35.25%)
Volume: 1.7M
Source: Tomorrow Events Market Data
The gross proceeds from the offering are estimated to be approximately $2.75 million. This figure, however, is subject to adjustment after deducting the placement agent’s fees and other associated offering expenses. The company has earmarked the net proceeds for strategic initiatives, with allocations as follows: client initial public offerings investment (25%), strategic acquisitions of businesses (25%), financing initiatives (25%), research and development for technology-related areas (15%), and team expansion (10%).
This significant move aligns with VCI Global’s overarching strategy to enhance its market presence, foster technological innovation, and broaden its portfolio through strategic acquisitions. The financing initiatives and client-focused investments underscore the company’s commitment to driving growth and maintaining a competitive edge in the ever-evolving global market.
The securities offered are governed by a registration statement on Form F-1 (File No. 333-275239), originally filed with the Securities and Exchange Commission (“SEC”) on August 18, 2023, and subsequently amended. The registration statement became effective on January 11, 2024.
Despite the positive outlook stemming from the public offering, VCI Global has faced challenges in the stock market in recent times. Over the last 5 days, the stock performance has declined by 50.97%, with a more substantial downturn observed over the last month (59.00%), the last 3 months (70.75%), and year-to-date (YTD) performance indicating a decline of 55.74%. These market fluctuations reflect the dynamic nature of the financial landscape and pose challenges even for well-established entities like VCI Global.
Investors and industry analysts will undoubtedly be closely monitoring the developments following the public offering, as VCI Global navigates the intricacies of the financial market, striving to achieve its outlined growth objectives and regain stability in its stock performance.
