KUALA LUMPUR (Jan 2): D’Nonce Technology Bhd is proposing to undertake a private placement of up to 10% of its issued share base to raise as much as RM6.08 million, which will be used to repay bank borrowings.

In a filing with Bursa Malaysia, D’Nonce said the repayment is expected to result in an annual interest savings of about RM450,000, based on the group's outstanding borrowings of RM78.22 million as at Dec 29 last year.

The exercise is expected to help the group reduce its gearing level 1.1 times as at Dec 29, 2017 to 0.96 times, the group said.

The proposed private placement will entail the issuance of up to 18.4 million new D’Nonce’s shares at an issued price to be determined and announced at a later date.

At an indicative price of 33 sen per share, D’Nonce said the issuance can raise up to RM6.08 million, of which RM5.98 million will be used to repay bank borrowings.

It expects the placement to be completed by the first quarter of this year.

As of market close today, D’Nonce’s share price slipped 1.4% to settle at 36 sen, giving it a market capitalisation of RM66.4 million. In the past 12 months, the stock has climbed about 36%.