PETALING JAYA: Kumpulan Powernet Bhd proposes to undertake a private placement to raise up to RM12.18 million.
In a filing with the stock exchange, the group said the private placement entails an issuance of up to 7.61 million new shares, representing up to about 10% of its total number of issued shares.
The placement shares will be placed out to independent investors to be identified later.
For illustration purposes, assuming the placement shares are issued at the price of RM1.60 per placement share, this represents a discount of about 9.86% to its five-day volume weighted average price of RM1.775.
Some RM6 million raised will be used for business expansion through investments and/or acquisitions in the logistics segment and/or other complementary businesses that can contribute positively to the group’s performance.
Meanwhile, an additional RM6.03 million will be utilised to finance the construction and completion of sewerage treatment facilities and upgrading works as well as the construction of a green building index-certified building in Kuala Lumpur.
Barring any unforeseen circumstances and subject to the approval of the relevant authority being obtained, the proposed private placement is expected to be completed in the first half of 2020.
At the noon break, Kumpulan Powernet’s share price was up 3 sen to RM1.84 on 778,500 shares done.
source https://www.thesundaily.my/business/kumpulan-powernet-to-raise-up-to-rm1218m-for-acquisitions-working-capital-GM1916594
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