KUALA LUMPUR: RCE Capital Bhd has proposed a private placement of up to 71.09 million shares of 10 sen each representing about 10% of its paid-up capital to investors to be identified towards raising funds for working capital.

Its paid-up capital now stands at RM71.09 million comprising 710.97 million shares.

The issue price will be based on a discount of not more than 10% to the five-day weighted average market price (WAMP) immediate prior to the price fixing date.

For illustrative purposes, applying a 10% discount on 51.3 sen being the five-day WAMP up to May 22, 2009, the issue price would be 46.2 sen per share. RCE said it would raise gross proceeds of about RM32.85 million.

RCE said the enlarged capital base would also strengthen its balance sheet and improve liquidity for its shares. ECM Libra has been appointed as adviser for the proposal and as the placement agent.