MESB proposes private placement to raise RM9.2m

PETALING JAYA: MESB Bhd is proposing to place out up to 30% stake, or 12.6 million new shares, in the company to raise RM9.2 million for working capital and business expansion.

The new shares are to be issued at 73 sen a share to independent third party investors to be identified at a later date.

The issue price represents a discount of 8.22% to the five-day volume-weighted average market price of MESB shares traded on Bursa Malaysia Securities up to and including July 10, 2017, being the last market day prior to the date of the announcement of 79.54 sen.

The board has appointed KAF Investment Bank Bhd as the adviser and the sole placement agent for the proposed private placement.

MESB closed 3.77% higher at 82.5 sen yesterday with 29,000 shares traded, for a market capitalisation of RM34.65 million.