KUALA LUMPUR (Dec 29): Artroniq Bhd, formerly known as Plastrade Technology Bhd, is planning to place out not more than 30% of its issued shares to raise as much as RM30.77 million, which it intends to use as working capital and to invest in a future viable investment in the information and communication technology (ICT) or management services sectors.

The private placement to investors to be identified will involve up to 86.68 million shares, at an issue price of 35.5 sen apiece, Artroniq said in a Bursa Malaysia filing.

It said the issue price is at a discount of about 3.52 sen or 9% from the volume weighted average market price of Artroniq shares from Dec 21 to 28, of about 39.02 sen.

Based on the RM30.77 million gross proceeds to be raised, about half will be used for the group to expand its business, including via inorganic means such as joint ventures or mergers and acquisitions in the sectors mentioned above.

"As at LPD (last practicable date before this announcement, i.e. Dec 28), the group is still exploring options for identifying suitable business(es)/investment(s) or strategic acquisition(s)/collaboration(s) and will continuously seek and identify such opportunities," said Artroniq, who, through its subsidiaries, manufactures and sells polyethylene compounds for wire and cable insulation.

The balance will be used for working capital, and to defray estimated expenses incurred by the proposed corporate exercise.

Artroniq expects the placement to be completed by the second quarter of 2021.

Shares in Artroniq closed four sen or 9.64% higher at 45.5 sen today, giving the group a market capitalisation of RM131.46 million. It saw some 12.08 million shares done.