KUALA LUMPUR (Dec 17): Metronic Global Bhd plans to raise up to RM33.94 million — almost a quarter of its current market capitalisation of RM141.52 million — through a private placement of up to 373.74 million shares or 30% of its issued shares, mainly to fund its existing and future engineering projects.

The issue price of the new shares and the third party investors will be decided at a later date, the group said in a filing with Bursa Malaysia.

For illustration purposes, the indicative price of the placement shares is assumed at 9.08 sen per share, a discount of 19.93% to the group’s five-day volume-weighted average market price of 11.34 sen.  

Metronic Global said the bulk of the proceeds, or RM32.65 million, will be used for existing and future engineering projects. Its engineering project order book stood at RM112.82 million at the latest practicable date.

Meanwhile, the group said it is in the midst of  tendering for several engineering projects worth RM103.79 million. If it succeeds in securing the projects, it expects to commence work in the first half of 2021.

The group expects the private placement to be completed by the first quarter of 2021.

Metronic Global’s share price closed unchanged at 11 sen, with 17.39 million shares changing hands. Year to date, the stock has jumped by 120% from five sen on Jan 2.