KUALA LUMPUR (May 3): Civil construction group Sarawak Consolidated Industries Bhd (SCIB) plans to raise up to RM227.8 million via its latest private placement.

In a bourse filing today, the group said it will place up to 20% of its issued shares to third party investors to be identified later,  at a yet to be determined issue price.

The Edge Malaysia had last month reported SCIB group managing director and CEO Rosland Othman as saying that the group intends to undertake a private placement to raise fresh funds to support its upcoming projects. The proposed exercise comes just 10 months after it closed a RM66.89 million private placement.

In June last year, the group had announced the completion of its earlier private placement of 36.75 million shares at RM1.82 per share, raising RM66.89 million.

In its filing today, SCIB said the RM227.8 million proceeds from the new placement exercise is based on the indicative issue price of RM1.548 per share.

The indicative issue price, it said, represents a discount of 9.94% to the five-day volume weighted average market price of SCIB shares up to April 22 of RM1.7189.

SCIB said RM133.02 million of the placement proceeds will be used for working capital for ongoing projects.

Another RM66.95 million will be set aside for estimated expenses for upcoming projects, while RM19.9 million will be utilised for capital expenditure requirements for current operations.

As at April 22,  the total issued share capital of SCIB was RM152.27 million, comprising 490.61 million shares. Additionally, SCIB has 245.18 million warrants, for which new shares can be subscribed during a three-year exercise period up to February 2024, at RM1.77 per warrant.

On the completion of the exercise, assuming all the warrants are fully converted into new SCIB shares prior to the implementation of the proposed private placement, SCIB will have an enlarged share capital of 882.95 million, valued at RM814.05 million.

The proposed placement is expected to be completed in the second quarter of 2021, the group said.

SCIB shares closed six sen or 3.49% lower at RM1.66 today, valuing the group at RM814.41 million. Over the past year, the counter has risen 219% from 52 sen.

Read also:

https://www.theedgemarkets.com/article/scib-plans-another-private-placement