BUSINESS

SCIB PROPOSES PRIVATE PLACEMENT TO RAISE UP TO RM10.98 MLN

11/01/2023 08:23 PM

KUALA LUMPUR, Jan 11 (Bernama) -- Sarawak Consolidated Industries Bhd (SCIB) expects to raise total gross proceeds of up to RM10.98 million from the proposed private placement of up to 10 per cent of the company's issued ordinary shares at an issue price to be determined later.

The proceeds are intended to be utilised for working capital, repayment of bank borrowings, as well as estimated expenses for the proposed private placement, it said in a filing with Bursa Malaysia.

SCIB said the proposed private placement will entail the issuance of up to 82.72 million placement shares representing not more than 10 per cent of the issued SCIB shares as at the latest practicable date (LPD) based on the maximum scenario.

The indicative issue price of RM0.1327 per placement share  represents a discount of about 9.97 per cent to the five-day volume weighted average market price of SCIB shares up to the LPD of RM0.1474.

As at Dec 30, 2022, being the LPD preceding the date of this announcement, SCIB has a share capital of RM153.62 million comprising 582.04 million SCIB shares and 245.18 million outstanding warrants.

“However, the actual number of shares to be placed to investors will be determined at a later date, after obtaining Bursa Malaysia Securities’ approval for the listing of and quotation for the placement shares on the Main Market of Bursa Securities,” it said.

 The proposed private placement will allow the group to raise funds expeditiously as opposed to a pro-rata issuance of securities such as a rights issue, as well as providing an avenue for SCIB to tap into the equity market to raise additional funds effectively without incurring interest costs as compared to funding via bank borrowings.

It will also reduce the gearing of the group due to the repayment of bank borrowings and the increase in the net assets of the group as well as strengthen the group’s financial and capital position.

-- BERNAMA

 

 


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