KUALA LUMPUR (Aug 15): Eversendai Corp Bhd has proposed to place out new shares to Macquarie Bank Ltd to raise up to RM75.84 million, mainly for repayment of short term borrowings.
 
The group plans to use up to RM70 million or 92% of the proceeds for the repayment of borrowings. Another RM4.84 million will be used for working capital and the remainder to finance the placement exercise.
 
In a bourse filing today, Eversendai said the private placement will involve up to 77.39 million new shares or 10% of its total issued shares. The issue price will be fixed later.
 
Eversendai, whose major shareholder is Tan Sri A.K. Nathan, had 774 million million shares as at Aug 14, of which 101,000 are held as treasury shares.
 
The group said the issue price of each tranche of the placement shares will be based on the volume weighted average market price (VWAMP) of Eversendai shares for the five market days immediately prior to the price-fixing date, with a discount of not more than 10%.
 
For illustrative purposes, the five-day VWAMP up to Aug 14 was RM1.08, Eversendai said.
 
"The illustrative issue price of 98 sen per placement share represents a discount of approximately 9.26% to the five-day VWAMP of Eversendai shares," the filing added.
 
Subject to the relevant approvals being obtained and barring any unforeseen circumstances, the company expects the proposed private placement to be completed by the first quarter of 2018.
 
Shares in Eversendai closed unchanged at RM1.10 today, for a market capitalisation of RM851.29 million.