KUALA LUMPUR (June 21) : LTKM Bhd has proposed to undertake a private placement of to raise up to RM11.71 million for working capital.

Comprising up to 13.01 million shares or 10% of its issued shares, the shares will be placed to independent investors at a price to be fixed later, the group said in a bourse filing.

The price will be at a discount of not more than 10% to the volume weighted average market price of LTKM shares for the five market days immediately preceding the price fixing date, said LTKM.

For illustrative purposes, the placement shares will be issued at an indicative price of 90 sen, it added.

The group said the private placement is a first step forward to enable the group to meet the public spread requirement.

“Upon completion of the proposed private placement, LTKM’s public shareholding spread will increase to 20.9%,” it said.

LTKM's share price closed one sen or 1% lower at 99 sen today, valuing the group at RM128.8 million.