Friday 29 Mar 2024
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KUALA LUMPUR (April 23): At a time when investors are shying away from oil & gas companies, Serba Dinamik Holdings Bhd wants to raise up to RM580 million fresh capital via private placement of new shares.

The oil & gas company announced to Bursa Malaysia today that the shares will be placed out to third-party investors who will be identified in the course of the book-building exercise.

Serba Dinamik's share price has staged a strong rebound recently, up from the low of RM1.13 on March 19 to RM1.30 today. Its market capitalisation stands at RM4.96 billion.  

The company’s balance sheet as at Dec 31, 2019 shows that its cash pile was at RM1.3 billion, however, its long-term borrowings were at RM2.946 billion and short-term debts were at RM404.7 million.

“Based on the illustrative issue price of RM1.47 per placement share, the proposed private placement is expected to raise gross proceeds of approximately RM450.57 million and RM580.09 million under the minimum scenario and the maximum scenario respectively,” said Serba Dinamik.

The amount represents a discount of about 10% or 16 sen to the five-day volume weighted average market price of Serba Dinamik shares of RM1.63 apiece as at April 16, the latest practicable date, it added.

Under the minimum scenario, RM200 million of the proceeds will be used for partial repayment of bank borrowings and RM239.43 million for working capital within 24 months and 12 months respectively.

In the maximum scenario, the allocations for both purposes are fixed at RM250 million and RM315.9 million respectively, with the same expected utilisation time frames.

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