KUALA LUMPUR (Sept 2): Shares in Oceancash Pacific Bhd rose by as much as 22.37% this morning after the company announced its expansion plan to double its production capacity for non-woven materials used in personal protective equipment (PPE).

The stock opened at 78 sen apiece, rising to a high of 93 sen per share.

At 9:43am, Oceancash shares were up by 14.57% or 11 sen at 86.5 sen, now valuing the company at some RM212.18 million. It saw 8.73 million shares transacted.

It was also the ninth top gainer on the local bourse this morning.

Oceancash had announced yesterday it would double its PPE non-woven material capacity to 16,000 tonnes per annum, with capacity expansion to be completed within less than 18 months from now.

It is forking out RM40 million in capital expenditure (capex) to buy land and machinery. This RM40 million will be funded through internal funds, placements and bank borrowings.

At the same time, it is planning to raise RM21.2 million by placing 24.5 million new shares to purchase one set of spunmelt non-woven machinery for non-woven fabric production, with the balance for working capital.

Edited by Surin Murugiah