THE media industry is currently at the crossroads with customer behaviours and tastes changing ever so rapidly. The industry is headed towards a digital-centric path.
While the industry as a whole is still in the midst of recovering from the COVID-19 pandemic, leading provider of outdoor advertising services Seni Jaya Corporation Bhd believes the time is right for them to engage in potential investment and acquisition activities due to the attractive valuation in the market.
Thus, the Main Market-listed Seni Jaya yesterday unveiled a proposed private placement exercise involving the issuance of up to 8.1 million new ordinary shares (placement shares) which represents up to 20% of the group’s total number of issued shares (proposed private placement).
“The process of transforming Seni Jaya into a digital and technological advertising outfit has been in motion since the beginning of the year and significant progress has been made,” commented Seni Jaya’s CEO Cheah See Heong.
“The recent addition of Malaysia’s first programmatic digital out-of-home advertisement into our portfolio in June this year is just a starting point with greater things to come.”
Seni Jaya’s up to 8.1 million placement shares shall be placed out to third-party investors at an issue price to be determined and announced later.
At an indicative price of RM2.234 per placement share – and assuming full subscription of the placement shares – Seni Jaya is expected to raise gross proceeds of about RM18.1 mil from the corporate exercise.
The proceeds will be utilised for investment opportunities, capital expenditure, and working capital needs.
“Looking ahead, we still have a series of expansion plans to execute. With the proceeds from the proposed private placement, the pace of our transformation plan will be markedly accelerated,” Cheah shared.
He further added that the company sees the need to set up new structures to support digital media, in addition to upgrading and digitalising the company’s existing advertising structures to cater for the growing demand for outdoor digital media among advertisers.
“These initiatives we are taking are not only opportunistic but necessary in the long run,” Cheah remarked.
At the close of market trading yesterday, Seni Jaya was down 2 sen or 0.84% to RM2.35 with 10,300 shares traded, thus valuing the company at RM95 mil – July 8, 2021
