Malaysia's Digistar sets placement price to raise RM9M for pay-TV push
What's the deal? Digistar Corporation Bhd has fixed the issue price for its private placement at 0.0315 ringgit per share, aiming to raise up to RM9 million (≈$2.2 million). It plans to issue up to 169.99 million new shares.
Who's buying? Third-party investors will take 20% of the issued share capital, or 113.32 million shares. LWC Capital Sdn Bhd, an investment vehicle of Digistar's managing director, will subscribe to 56.66 million shares, or 10%.
What's the endgame? The bulk of proceeds — RM8.6 million — will fund the expansion of Digistar's pay-TV services, including android television boxes, content, marketing, and hiring. A further RM230,000 goes to repay bank borrowings and RM180,000 to placement costs.
By the numbers: Digistar posted a net loss of RM3.45 million in the nine months ended June 30, 2024. Its stock traded at 0.040 ringgit on 14 July 2026, within a 52-week range of 0.030 to 0.065 ringgit.
What could go wrong? The company enters a new, capital-heavy pay-TV market while still loss-making and trading near penny-stock levels. The placement dilutes existing holders to fund an unproven venture.
The signal: A small, cash-strained listed firm is turning to equity, backed partly by its own management, to bankroll a fresh bet — a sign of how thinly capitalised players fund pivots when borrowing room runs short.
Read more: AInvest
