YY Group Holding Limited entered into an At‑The‑Market Sales Agreement with Spartan Capital Securities and Wilson‑Davis & Co. to sell up to US$20 million of its Class A ordinary shares. The agreement allows the company to raise capital at prevailing market prices on Nasdaq or other venues, with the option to conduct private or block transactions.
YY Group plans to allocate approximately US$0.4 million of the proceeds to repay a high‑interest business loan that carries a 38 % annual rate and matures in December 2026. The remaining funds will support general corporate purposes, including business diversification, development initiatives and capital expenditures.
The offering comes as YY Group reports negative operating and net margins, an EPS of –$0.36, a debt‑to‑equity ratio of 0.38 and a current ratio of 1.14. Revenue for the first half of 2025 rose 53 % year‑over‑year to US$29.4 million, and the company projects full‑year 2025 revenue to exceed US$60 million, driven by growth in its on‑demand workforce and integrated facilities management segments.
By reducing the high‑interest debt, YY Group aims to lower its financing costs and improve cash‑flow stability. The capital raise also provides liquidity to pursue acquisitions and expand its service portfolio, which has been a key growth strategy following the February 2025 acquisition of Property Facility Services Pte. Ltd.
Shareholder dilution is a consideration, as the sale of up to US$20 million in Class A shares could increase the number of outstanding shares. However, the company’s market capitalization of approximately US$11.45 million and its recent $10.5 million banking facility suggest that the equity infusion will be absorbed without immediate pressure on existing equity holders.
The announcement follows a February 27, 2026 convertible note and warrant offering of US$11.88 million, indicating a broader financing strategy to support growth while managing debt. Analysts note that the company’s top‑line growth is outpacing its profitability, underscoring the need for capital to bridge the gap between revenue expansion and margin improvement.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.