Communications services company Teledata (Singapore) will issue and place out up to 240 million new shares, it said on Tuesday.

The shares will be issued at 1.02 cents each, a 7.3 per cent discount from the volume-weighted average price of 1.1 cents for trades done on Monday.

The mainboard-listed firm expects to reap net proceeds of $2.33 million for the private placement.

These proceeds will be used for general working capital, payment of trade payables and for general expansion of the business.

The placement shares will represent about 9.06 per cent of the enlarged capital of the company, Teledata said.