Minetech’s Prospects Gets Market Nod With Its ICPS Oversubscribed By 45%

Minetech’s rights issue of irredeemable convertible preference shares (ICPS) has been oversubscribed by 45.53% over the total number of ICPS available under the rights issue of ICPS.

In a filing with Bursa Malaysia today, Executive Chairman Dato’ (Dr) Ts. Awang Daud said total valid acceptances and excess applications for 847,936,762 ICPS were received as at the closing date representing 145.53% of the total 582,664,397 ICPS available for subscription.

The ICPS was issued at the price of RM0.03 per ICPS – on the basis of one ICPS for every two existing shares held by entitled shareholders.

Minetech’s primary shareholders had undertaken to collectively subscribe to approximately 256.20 million ICPS which raised proceeds of approximately RM7.69 million from the rights issue exercise. The total proceeds raised from the rights issue exercise was approximately RM17.48 million.

The group’s rights issue is part of a series of corporate exercises it mooted in March this year including a share capital reduction (SCR), private placement, diversification, amendments to the company’s constitution and share issuance scheme.

“The SCR of RM90 million will see the corresponding credit arising from the reduction being used to reduce or eliminate accumulated losses. While the SCR will not result in any adjustment for the market price and number of Minetech shares held by shareholders, it will enhance Minetech credibility with customers, suppliers and investors”, articulated the Executive Chairman.

“We hope to raise approximately RM55.94 million from our private placement exercise, which will bring the total gross proceeds raised from our fundraising activities to RM73.42 million, which we will channel to fund expenditure for construction projects, repayment of borrowings, development cost for our solar power plant, future business investments and acquisitions, expansion of quarry division, diversifications into the oil & gas sectors, expansion of its bituminous products division and working capital”, elaborated Dato’ (Dr) Ts Awang Daud.

Minetech has set a 5-year strategic direction, targeting EPCC, Energy, Quarry and Manufacturing while actively sourcing for other potential sustainable projects and businesses, such as the recent investments in solar energy and financial technology to ensure sustainable growth in future. These will be Minetech’s key focus areas that are expected to help improve its financial performance in the years to come.

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