Ralco Corp to raise up to RM3.3m via private placement

-A +A

KUALA LUMPUR (May 4): Plastic products manufacturer Ralco Corp Bhd has proposed to raise up to RM3.27 million via a private placement to independent investor(s) to be identified later.

The proceeds raised will be used to purchase equipment and machineries.

In a filing with Bursa Malaysia today, Ralco said the proposed private placement will involve the issuance of up to 6.23 million new shares, representing not more than 10% of its issued shares.

As at April 30, 2018, Ralco's share capital comprises 41.98 million shares worth RM41.98 million and 20.34 million outstanding warrants, which will expire on Dec 21, 2019.

Assuming that none of the outstanding warrants are exercised, the proposed private placement would raise RM2.2 million in proceeds. On the other hand, assuming that all the outstanding warrants are exercised, the proposed exercise will raise RM3.27 million.

Ralco said it has also earmarked part of the proceeds to construct a new clean room facility in the group's vacant plant in Nilai, Negeri Sembilan.

"Building a new clean room facility will enable the expansion of the group's product range into the medical device market," it added.

Another RM800,000 has been earmarked for the renovation of the group's manufacturing plant in Skudai, Johor. The plant is 15 years old and the renovations are part of the group's efforts to upkeep and maintain the plant.

Barring unforeseen circumstances, Ralco expects the proposed private placement to be completed by the second half of 2018.

Ralco shares were untraded today. The counter last closed at 58 sen per share, giving it a market capitalisation of RM24.35 million.