Kuala Lumpur:Telecommunications engineering solutions provider Binasat Communications Bhd has announced a proposal for a private placement of up to 60.43 million new shares. This represents up to 10 percent of its total issued shares and is aimed at raising funds from third-party investors.

According to BERNAMA News Agency, the company anticipates gross proceeds of RM4.23 million from this private placement. Additionally, RM21.83 million from the equity-funded portion of a previous placement and share issuance will be reallocated under a proposed variation in the use of proceeds. This will bring the total funds involved to RM26.06 million, with RM25.75 million earmarked for the proposed use of proceeds.

Binasat expects the RM25.75 million in proceeds to be utilized within 24 months. The estimated costs for the private placement are RM150,000, and expenses related to the proposed variation are expected to be incurred immediately.

The board of Binasat believes that the private placement is the most appropriate fundraising option currently available, as it allows the group to quickly raise funds for its intended purposes. The proposed placement is also expected to positively impact the group's cash flow and future earnings as the benefits of the proceeds' utilization are realized.

The proposed variation pertains to proceeds from a private placement announced on December 4, 2024, completed on September 11, 2025, which involved the issuance of 128.14 million shares. This also includes consideration shares issued in connection with acquiring 241 fully furnished hotel suites at Empire City in Selangor.