New Hoong Fatt (KLSE:NHFATT) plans to invest up to 20 million ringgit in a venture capital fund formed through a Malaysia-based special purpose venture capital fund vehicle, Cypress Drive Ventures, according to a Thursday filing with the Malaysian bourse.
Shares of the auto replacement parts company fell nearly 1% in Friday's morning trade.
The funding injection will be made through the company's wholly owned subsidiary, Jhi Soon Manufacturing Industries.
For the investment, the company has signed an agreement with Cypress Asia Capital to subscribe to up to 20 million Class A redeemable preference shares in Cypress Drive at an issue price of 1 ringgit apiece.
The investment will help the group gain exposure to emerging business models, technologies, and market opportunities while maintaining its focus on its core automotive replacement parts business, the company said.