Xin Hwa plans to raise up to RM17.28m via private placement

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KUALA LUMPUR (Sept 26): Xin Hwa Holdings Bhd has proposed to raise up to RM17.28 million via the placement of shares to third party investors to fund a new warehouse.

In a stock exchange filing, the land transport operator said the proposed private placement will involve the issuance of up to 10% of its issued shares, or 21.6 million shares, at an issue price to be determined later.

The placement shares will not be priced at more than 10% discount to the five-day volume weighted average market price (VWAP) of its shares immediately preceding the price fixing date.

The expected gross proceeds to be raised is based on the illustrative issue price of 80 sen apiece.

The company expects the proposed exercise to be completed by the fourth quarter of 2018.

Shares of Xin Hwa did not trade today, it last settled at 86.5 sen on Sept 24, giving it a market capitalisation of RM186.84 million. In the past one year, the stock has retreated about 17%.