HeiTech Padu Bhd has proposed a private placement of up to 10.12 million new ordinary shares to external investors, constituting 10% of its total issued shares.

If issued at an illustrative issue price of RM2.27, the proposed corporate move will allow the company to raise gross proceeds of RM22.98 million, majority of which will be deployed as working capital.

These proceeds will mainly be utilised for staff salaries, employers' statutory contributions, payment to suppliers and creditor, office administrative expenses, utilities expenses and overhead expenses, according to its exchange filing today.

HeiTech's share price closed 0.8% lower at RM2.37 bringing it a market capitalisation of RM240 million.