KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG) (Frankfurt:H0T), a diversified holding company, has concluded its At-The-Market equity offering program as of September 25, 2024. The program, managed by H.C. Wainwright & Co., LLC, was designed to intermittently offer shares worth approximately $4.96 million. By its termination, the program had raised around $1.77 million in gross proceeds.
The company has expressed that the termination of the ATM program will allow it to consider more advantageous financing alternatives that are in line with its strategic growth plans. The cessation of this program does not equate to an offer to buy or sell securities, and any such actions would be illegal without proper registration or qualification under the respective securities laws.
Headquartered in Kuala Lumpur, Malaysia, VCI Global operates across diverse sectors including Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. The company's footprint spans the Asia-Pacific region, the United States, Europe, and the Middle East, aiming to drive growth and transformation globally.
The company's forward-looking statements in the press release reflect its aspirations for business expansion but are subject to various risks and uncertainties. These statements are not guarantees of future performance and are subject to factors such as market acceptance of new products, competitive pressures, economic conditions, and the ongoing impact of the COVID-19 pandemic.
Investors should note that the information provided is based on a press release statement from VCI Global Limited. The company's future results could materially differ from those anticipated in these statements due to numerous factors, including but not limited to its ability to achieve profitability and manage external economic conditions. These forward-looking statements are current as of the date of the press release, and the company does not commit to updating them, except as required by law.
In other recent news, VCI Global Limited announced a significant $18 million contract to list four Malaysian companies on the Nasdaq stock exchange. The deal, in partnership with Legacy Corporate Advisory Sdn Bhd, is expected to generate projected revenues of $18 million over the next 14 months for VCI Global. The companies involved span industries such as telecommunications, waste management, healthcare and beauty, and leisure.
In more recent developments, VCI Global reported a robust financial performance for the first half of 2024. The company saw a 44% increase in revenue, totaling $13.7 million, and a 25% rise in net income, reaching $5.4 million. Notably, revenue surged by 151% in the Business Strategy Consulting segment and 183% in the Fintech segment.
VCI Global also completed a secondary listing on the Frankfurt Stock Exchange and announced a $10 million share buyback program. Strategic acquisitions and partnerships, including with Wootzano and Cogia GmbH, have expanded the firm's technological capabilities. Despite the challenging macroeconomic environment, the company expects continued growth and success.
InvestingPro Insights
VCI Global Limited's recent decision to conclude its At-The-Market equity offering program aligns with several key financial metrics and trends highlighted by InvestingPro.
According to InvestingPro data, VCI Global has demonstrated impressive revenue growth, with a 89.38% increase in the last twelve months as of Q2 2024. This strong performance is complemented by a robust gross profit margin of 70.86% for the same period. These figures suggest that the company's strategic growth plans, mentioned in the article, are yielding positive results.
InvestingPro Tips reveal that VCI Global "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors likely contribute to the company's confidence in exploring more advantageous financing alternatives, as stated in the article.
However, investors should note that the stock has experienced significant volatility. An InvestingPro Tip indicates that the "stock has taken a big hit over the last six months," with data showing a -85.43% price total return over that period. This volatility aligns with the company's cautionary statements about future performance in the press release.
Despite recent price declines, VCI Global appears to be trading at attractive valuations. InvestingPro Tips highlight that the company is "trading at a low Price / Book multiple" and "trading at a low earnings multiple." The Price / Book ratio stands at 0.23, while the P/E Ratio (Adjusted) is 1.32 for the last twelve months as of Q2 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for VCI Global, providing a deeper understanding of the company's financial health and market position.
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