KUALA LUMPUR (Sept 25): Spritzer Bhd fell 6.44% on news that the mineral water producer is planning a private placement to raise about RM64 million to build an automated warehouse in Taiping, Perak. 

This exercise will dilute its largest shareholder Yee Lee Corp Bhd’s stake in the company, according to its bourse filing last Thursday.

At 10am, Spritzer slid 15 sen to RM2.18 with 23,000 shares done, for a market capitalisation of RM416.29 million. Year to date, the counter has shed about 11%.

Spritzer intends to place out some 27.39 million new shares — representing some 15% of its current issued shares — to Tasik Puncak Holdings Bhd.

On completion of the placement, Tasik Puncak will emerge as its second-largest shareholder with a 13.04% stake, while Yee Lee's stake will be trimmed to 27.89% from 32.07%.

The placement, at an issue price of RM2.33 per share, is expected to raise gross proceeds of RM63.81 million for Spritzer, and expand Spritzer's total issued shares to 209.97 million from 182.58 million.

It intends to use 70.5% or RM45 million of the proceeds raised to construct a single-storey automated warehouse, next to its existing Taiping facilities.

The remainder of the proceeds will be used for working capital (RM18.61 million) and to pay off estimated expenses of the exercise (RM200,000).