Company: MAGH
Filing Date: 2025-01-02
Form Type: DRS
Source: 0001493152-25-000010
Chunk: 51

Company: Magnitude International Ltd
Filing Date: 2025-01-02
Form: DRS
Chunk 51
---
 PROCEEDS</div>

We estimate that we will receive net proceeds from this offering of approximately US$[●] million after deducting underwriting discounts, commissions and the estimated offering expenses payable by us and based upon an assumed initial offering price of US$[●] per Ordinary Share (the mid-point of the estimated public offering price range shown on the front cover of this prospectus). We will not receive any proceeds from the sale of Ordinary Shares by the Selling Shareholders.

We currently intend to use the net proceeds from this offering for the following purposes:

● Approximately 30% of the proceeds from the offering to expand and grow existing business through possible future strategic acquisitions, joint venture and/or strategic alliances;

● Approximately 10% to purchase materials as our Group increases the number and/or scale of projects we secure;

● Approximately 10% to expand our workforce to support our business expansion both at the work sites and also back office;

● Approximately 15% to move to a bigger head office to provide more office area and additional physical storage facilities to house inventory and equipment and spare parts;

● Approximately 10% for the rental of a bigger dormitory to house our foreign workers;

● Approximately
5% of the proceeds from the offering for digitalizing our systems, upgrading existing equipment, and investing in software solutions
like enterprise resource planning (ERP) systems, and human resource (HR) systems. This investment aims to streamline our business and
administrative processes, encompassing quoting, invoicing, tracking, procurement with inventory management, accounting, financial reporting,
employee management, to achieve improvement in overall efficiency; and

● The balance of the net proceeds for other working capital and general corporate purposes.

This expected use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. As of the date of this prospectus, we cannot predict with certainty all of the particular uses for the net proceeds to be received upon the closing of this offering or the amounts that we will actually spend on the uses set forth above. Our management will retain broad discretion over the allocation of the net proceeds from this offering. The occurrence of unforeseen events or changed business conditions may result in application of the proceeds of this offering in a manner other than as described in this prospectus. We may satisfy our future cash needs through the sale of equity securities, debt financings, working capital lines of credit, corporate collaborations or license agreements, grant funding, interest income earned on