Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 26): Building material manufacturer Ajiya Bhd has proposed to undertake a private placement of up to 6.92 million shares to raise RM25.96 million, mainly for working capital.

In a filing with Bursa Malaysia today, Ajiya said these new shares, which represent about 10% of its total issued and paid-up share capital, are meant to be issued to independent third party investors to be identified later.

The group also said the placement shares will be priced at a discount of not more than 10% to the volume weighted average market price for five market days (5D-WAMP), immediately preceding the price fixing date.

Based on an indicative issue price of RM3.75, Ajiya said it expects to raise about RM25.96 million, of which 70.6% will be utilised for working capital, 17.3% for acquisition of equipment and factory facilities, 9.6% for expansion of production capacity; and the remaining, for estimated expenses incurred for the corporate exercise.

The group expects the private placement to be completed by the first quarter of 2016.

Ajiya (fundamental: 2.1; valuation: 1.4) closed five sen or 1.21% lower at RM4.08 today, giving it a market capitalisation of RM285.9 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

      Print
      Text Size
      Share