New Hoong Fatt's (KLSE:NHFATT) subsidiary, Jhi Soon Manufacturing Industries, will invest up to 20 million in a venture capital fund, according to a Friday Bursa Malaysia filing.
The fund is established through a special-purpose venture capital fund vehicle, Cypress Drive Ventures.
In connection with the proposed investment, the unit has signed a share subscription agreement with Cypress Drive and Cypress Asia Capital to subscribe for up to 20 million class A redeemable preference shares at an issue price of 1 ringgit per share.
The proposed investment is part of the unit's capital allocation strategy and would provide it with access to a diversified portfolio of early-stage, high-growth investment opportunities.
Shares of New Hoong Fatt fell nearly 1% in recent trade.