Thursday 28 Mar 2024
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KUALA LUMPUR (May 8): Gadang Holdings Bhd, whose share price has staged a strong rebound since the start of the year, is proposing a private placement to raise up to RM62.12 million.

In a filing with Bursa Malaysia today, Gadang said it will issue up to 82.825 million new ordinary shares, representing not more than 10% of the enlarged issued shares of 828.257 million as at May 7.  

It said the issue price of the placement shares will be determined and fixed by the board at a later date but explained that it will be priced at no more than 10% discount to the 5-day volume weighted average market price (5D-VWAP) of Gadang shares immediately before the price fixing date.

For illustrative purposes, the issue price of the placement shares is assumed at 75 sen, representing a discount of approximately 8.99% to the 5D-VWAP of Gadang shares as at May 7.

Based on the indicative price, the total proceeds from the private placement will be RM62.12 million, which Gadang said will be utilised for construction projects expenditure, repayment of bank borrowings as well as expenses related to the proposed private placement.

Gadang noted that the proposed private placement is expected to be completed within six months from the date of approval from Bursa Malaysia, in which an application to the regulator will be submitted within the next two weeks.

It added that TA Securities has been appointed as the adviser and placement agent for the proposed private placement.

Gadang’s share price was up one sen today at 86.5 sen with a market capitalisation of RM572.39 million.

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