KUALA LUMPUR (Jan 12): Offshore crane operator Handal Energy Bhd is looking to raise up to RM11.13 million via a private placement to repay its borrowings and fund its working capital.
In a bourse filing, the group said it is planning to issue up to 49.48 million new shares or 20% of its share capital to third party investors to be identified.
It noted that the indicative issue price of placement shares is assumed to be 22.5 sen apiece, which is a 2.28 sen or 9.2% discount to its five-day volume-weighted average market price (VWAMP) of 24.78 sen.
Up to RM4 million of the proceeds raised will be used to repay the group’s borrowings, which will trim its borrowings to RM25.87 million from RM29.87 million, and reduce its gearing to 0.29 times, from 0.38 times.
Then up to RM6.81 million of the proceeds will be used for working capital to finance its payments to suppliers and sub-contractors as part of its business operations. The remaining RM320,000 will be used to defray expenses associated with the private placement.
As a result of the proposed placement, which Handal expects to be completed by the first quarter of this year, its share capital could rise to as much as 296.9 million shares, from 218.83 million shares currently.
Alliance Investment Bank Bhd is the adviser and placement agent for the proposed private placement.
Shares in Handal Energy were unchanged at 4.14pm, giving it a market capitalisation of RM50 million, after 614,100 shares were traded.