Minetech fixes issue price for placement shares at 10 sen apiece

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KUALA LUMPUR (April 10): Minetech Resources Bhd has fixed the issue price for the placement of 30 million new shares at 10 sen per share, which will be the first tranche of the proposed 106.39 million placement exercise.

“The issue price represents a premium of approximately 6.27% over the five-day volume weighted average market price of Minetech shares up to and including April 9, 2018, being the last market day immediately preceding the price-fixing date, of 9.41 sen per share,” said the company in its filing with the stock exchange.

In December last year, Minetech proposed to undertake the private placement of up to 10% of the total number of issued shares to investors, expecting to raise between RM10.97 million and RM15.96 million, based on an indicative issue price of 15 sen per share.

A major portion of the proceeds (about 70%) will go towards property development expenditure, while the balance will be used for working capital purposes and to cover estimated expenses of the exercise.

Minetech's share price rose 0.5 sen or 5.26% to 10 sen, giving it a market capitalisation of RM73.16 million.