KUALA LUMPUR (Sept 22): Iconic Worldwide Bhd has proposed a private placement of up to 97.11 million shares, representing not more than 30% of its issued capital, to raise up to RM47.59 million for its personal protective equipment (PPE) business.

In a bourse filing, the group said the number of placement shares is based on its share capital of RM65.1 million comprising 323.71 million shares as at Sept 14, assuming that none of its 57.32 million redeemable convertible preference shares are converted into new shares.

The placement shares will be issued at no more than a 10% discount to Iconic's five-day volume-weighted average market price at a date to be disclosed later.

The placement shares would be allocated among independent investors, the group said.

Of the proceeds (which are based on an indicative price of 49 sen apiece), RM46.59 million would be used to fund part of its investment in its PPE business. The remainder would be funded through a combination of internally generated funds and borrowings.

On Sept 2, the group announced that it would be investing RM155.51 million in its new PPE business — which would involve buying land for a new production facility (comprising 12 glove dipping lines and 10 face mask production lines), and the installation of glove dipping and face mask production lines among other items.

Following the placement, the group said its share capital would increase to as much as 420.83 million shares, from 323.71 million shares now.

Iconic expects the placement to be completed by the fourth quarter of 2020.

Yesterday, Iconic announced that it was purchasing a 5.53-acre plot of land in Batu Kawan, Penang for RM12.53 million to build its factory for the PPE business.

Iconic shares finished one sen or 1.96% higher at 52 sen, valuing the group at RM168.3 million. The counter saw 2.61 million shares traded.