Friday 29 Mar 2024
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KUALA LUMPUR (March 28): Just weeks after completing a private placement exercise, ACE Market-listed Mikro MSC Bhd has proposed to undertake another private placement of up to 97.22 million new shares, equivalent to 15% of its total issued share capital, to part-finance the purchase of a 10% stake in a biomass fuel exporter.

In a bourse filing on Tuesday (March 28), the computer-controlled power safety device maker said the shares are to be placed out to third-party investors to be identified and secured at a later date.

The company expects to raise RM15.56 million from the exercise, based on an indicative issue price of 16 sen per share, which represents a discount of 11.75% of the counter’s five-day volume weighted average market price up to and including March 24.  

Towards funding the acquisition of 10% equity interest in biomass fuel exporter Bio Eneco Sdn Bhd, RM13.5 million of the proceeds from the exercise will go towards part-financing the acquisition’s RM22.5 million purchase consideration. 

Another RM1.8 million will be utilised for working capital, while the remainder will go towards defraying the estimated expenses of the private placement. 

Touching on the rationale of the exercise, Mikro MSC said the private placement would enable the company to raise funds without incurring interest costs to fund the acquisition of the 10% stake in Bio Eneco, which serves to diversify its revenue stream and enhance its business profile in the energy-related industry.

The company has appointed KAF Investment Bank Bhd as its adviser and placement agent for the corporate exercise. 

It continued that barring any unforeseen circumstances, the proposed private placement is expected to be completed within six months from the date it receives Bursa Securities’ approval for the listing of the placement shares. 

“The application with Bursa Securities for the proposed private placement is expected to be made within two months from [Tuesday],” it said, adding that the proposal is also subject to its shareholders’ approval in an extraordinary general meeting to be convened. 

On March 9, Mikro MSC completed a private placement of 58.92 million shares or 10% of its then share base at 16 sen apiece to raise RM9.43 million, mainly for working capital purposes. 

Shares in Mikro MSC finished unchanged at 18 sen on Tuesday, giving the company a market capitalisation of RM116.67 million. 

Edited ByIsabelle Francis
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