KUALA LUMPUR (Nov 22): Priceworth International Bhd has proposed to place out new shares to third party investors to be identified later to raise up to RM20.4 million mainly for working capital.

In a filing with Bursa Malaysia today, Priceworth said the private placement will involve up to 93.07 million new shares or 10% of its total number of issued shares at an issue price to be determined and announced later.

"The placement shares will not be priced at more than 10% discount to the five-day volume weighted average market price (5D-VWAP) of shares immediately before the Price Fixing Date," said Priceworth.

"For illustrative purposes, the 5D-VWAP of shares up to and including the latest practicable date is 23.87 sen per share. The indicative issue price of the placement shares would therefore be 22 sen each, representing a discount of not more than 10% to the 5D-VWAP," said the company.

The board expects the proposed exercise to be completed within six months from the date of approval from Bursa Malaysia, Priceworth added.

Shares in Priceworth closed unchanged at 24.5 sen with 1.96 million shares traded for a market capitalisation of RM224.94 million.