LEAP Market-listed Metro Healthcare Bhd has proposed a private placement to raise up to RM18.05 million to fund its business expansion plans to the northern and central regions.

The placement involves the issuance of up to 20.06 million new shares, or 10% of the group’s issued shares, to third-party investors to be identified later, the group said in an exchange filing yesterday.

The fertility specialist healthcare provider said the issue price of the placement shares will be fixed by its board at a later date. Based on an indicative issue price of 90 sen per placement share, the exercise could raise up to RM18.05 million.

About RM16 million of the money raised will be used to fund the group’s business expansion plans and upgrade its women’s clinic based in Johor Baru, said Metro Healthcare.

Another RM1.61 million will be used as working capital while the remaining amount will be for funding exercise expenses.

Metro Healthcare said it intends to expand its business into the northern and central regions of Peninsular Malaysia by setting ambulatory care centres in Penang, Ipoh and Seremban.