Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on September 21, 2017

MESB Bhd (-ve)

SHARES in MESB Bhd (fundamental: 0.95/3, valuation: 0.9/3), a retailer of leather products under brands like Alain Delon, Pierre Cardin, and Pierre Balmain, triggered our momentum algorithm yesterday for the third time this month.

MESB closed four sen or 3.74% higher at RM1.11, after 2.12 million shares were traded versus the counter’s 200-day average volume of 25,164.5 shares. The group’s market capitalisation stood at RM46.62 million.

The group recently proposed a private placement of 12.6 million new ordinary shares, equivalent to 30% of its total issued shares, to six independent third-party investors at an issue price of 73 sen per share, to raise gross proceeds of RM9.2 million.

The bulk of the money raised will be used to meet its working capital requirements and business expansion — including the opening of new consignment counters and the launch of new product lines and brand.

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