KUALA LUMPUR (Oct2): Homegrown cakes and snack food producer London Biscuits Bhd has fixed the issue price for the third and final tranche of its proposed private placement, comprising 2.35 million shares, at RM1 apiece.

In a filing with Bursa Malaysia today, London Biscuits said the issue price represents a premium of some 21.8% from its five-day weighted average market price of about 82.1 sen.

To recap, London Biscuits had on July 31, 2014 announced its private placement plan to raise some RM16.35 million, of which RM10 million will be used to repay bank borrowings within six months, RM6.15 million will be for a year’s working capital, with the remaining RM200,000 for estimated expenses.

The private placement, which would be implemented in tranches within six months, would involve the issuance of up to 16.35 million shares, which represents 9.9% stake in the group, to third party investors.

London Biscuits’ counter fell 1 sen to close at 81 sen today, bringing it a market capitalisation of RM143.8 million.