Seacera seeks RM70m funding via new share issuance

-A +A

KUALA LUMPUR (April 21): Seacera Group Bhd has proposed to issue between 70 million and near 80 million new shares to raise at least RM70 million, it announced today.

Seacera said in a filing that it entered into conditional subscription agreements with 12 subscribers today for the subscription of 70.78 million new shares, representing 30% of its enlarged share capital.

The issue price of RM1 per share, said Seacera, is concluded based on multiple volume weighted average market price (VWAP) of its shares, which stood at between 95 sen and RM1.08.

The issuance will be implemented in several tranches in six months from the date of approval by Bursa Malaysia, it added. Subsequent tranches will be placed to third party investors at a price to be identified later.

As at end-March, Seacera has two warrants — 12.5 million, expiring 2017 and another 17.68 million expiring 2019.

Of the RM70.78 million expected from the share issue, Seacera said RM40 million will be used to expand its construction and property development business, whereas the rest will be spent on repayment of borrowings (RM10 million), working capital (RM20.38 million) and estimated expenses.

Shares of Seacera last closed one sen or 0.78% lower at RM1.28 with over 16.12 million shares done, for a market capitalisation of RM301.59 million.