Sumatec to raise up to RM20.5m from private placement

PETALING JAYA: Oil and gas player Sumatec Resources Bhd proposes a private placement exercise to raise up to RM20.49 million for working capital.

It told Bursa Malaysia that the proposed placement entails an issuance of 386.61 million shares, representing not more than 10% of its issued shares.

Based on an indicative issue price of 5.3 sen per placement share, the exercise will raise up to RM20.49 million, which will be used for staff salaries and allowances (RM7.2 million), rental and utilities (RM3 million), other overhead costs (RM6.14 million) and project management consultancy cost (RM3.4 million).

Sumatec noted that the private placement will allow it to raise the necessary funding to finance its day-to-day working capital requirements.

“The proposed private placement is an interim proposal to meet the immediate funding needs of the Sumatec group pending the implementation of the comprehensive series of fund raising and securities issuance proposals as announced on February 17, 2017,” it said.

Sumatec also said it is the most cost-effective source of capital to meet its working capital needs in the short term and the most expeditious way of fundraising from the capital market as opposed to other forms of fundraising.