Sarawak Consolidated Industries Berhad is proposing a private placement to raise gross proceeds of up to approximately RM10.98 million for working capital, repayment of bank borrowings, and estimated expenses for the proposed private placement.
The group said while the issue price and the actual number of shares to be issued will be determined later, under the maximum scenario in which all the Company’s 245.18 million outstanding warrants are exercised, the proposed private placement will entail the issuance of up to 82.72 million placement shares at an indicative price of RM0.1327 per placement share to raise gross proceeds of up to approximately RM10.98 million. Under the minimum scenario, should none of the outstanding warrants be exercised, then gross proceeds raised will be RM7.72 million.
The proposed issuance represents not more than 10% of the issued shares as of the latest practicable date of 30 December 2022 while the indicative price per share represents a discount of approximately 9.97% to the five-day volume weighted average market price of SCIB shares up to the LPD of RM0.1474. SCIB proposed private placement could be implemented in several tranches within six months of approval from Bursa Securities Malaysia Berhad or any extended period approved by it until the conclusion of the next AGM.
Group Managing Director of SCIB, Encik Rosland bin Othman said “The proposed private placement is a more expeditious way to raise funds as opposed to a rights issue and is also more cost-effective than bank borrowings given the higher interest rates. By repaying current bank borrowings, we can reduce gearing and increase the net assets while strengthening the financial and capital position of the Company as well as potentially improving the liquidity of our shares in the market.”
