Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (July 8): Asia Bioenergy Technologies Bhd (Asia Bio) has proposed a private placement of 152.06 million shares or not more than 10% of its issued and paid up share capital to raise up to RM15.21 million for the company’s technology incubation fund and working capital.

In a filing with Bursa Malaysia, Asia Bioenergy (fundamental: 0.6; valuation: 0.9) said the issue price of the shares will be determined at a later date but the exercise is expected to raise up to RM15.21 million in a maximum scenario based on an indicative issue price of 10 sen each.

The indicative price represents a premium of approximately 46.2% to the five-day volume-weighted average price (VWAP) of its shares.

Asia Bioenergy said the proposed private placement of shares will not be priced lower than the par value of 10 sen.

The exercise will raise the company’s share base to 1.67 billion shares from 866.71 million shares.

Asia Bio said the fund provides for future investments which include companies involved in high growth and high technology industries.

Additionally, Asia Bio said the Securities Commission (SC) has granted an extension until March 31, 2016 to Asia Bioenergy to comply with the Bumiputera equity requirement and the proposed private placement will facilitate the compliance.

“Nevertheless, in the event there are remaining placement shares available subsequent to the placement to Bumiputera investors or there is no shortfall, Asia Bio will still proceed with the proposed private placement to other independent third party investors,” the filing read.

The proposed private placement will also serve to increase the capitalisation of the company and to strengthen the financial position of Asia Bioenergy, the filing stated.

Asia Bionergy shares closed half a sen or 7.7% higher at 7 sen, with a market capitalisation of RM60.67 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