Spritzer to raise RM63.8m for warehouse expansion

PETALING JAYA: Spritzer Bhd has proposed an issuance of up to 27.4 million new shares to Tasik Puncak Holdings Ltd to raise up to RM63.81 million to fund the expansion of warehouse facilities in Taiping.
Upon completion of the exercise, Tasik Puncak Holdings, which currently does not hold any shares in the group, will emerge as its substantial shareholder with a 13.04% stake.
The issue price of RM2.33 per placement share represents a premium of about 8.37% to the five-day volume weighted average market price of Spritzer shares up to Sept 20, 2017 of RM2.15.
Spritzer said it will use RM45 million of the proceeds to fund the construction of an automated warehouse, while the remaining will be used for working capital and estimated expenses related to the exercise.
Tasik Puncak Holdings is a special purpose vehicle of Dymon Asia Private Equity (SE Asia) Ltd (DAPE), a private equity firm focusing on making private equity investments in the Southeast Asia region.
“DAPE hopes to contribute its industry experience as well as its broad networks to support the Spritzer Group in its future growth plans,” said Spritzer in a filing with Bursa Malaysia.
Further, the group said it will be able to increase its warehouse space by about 105,820 sq ft, thus increasing the warehousing capacity to improve productivity and increase efficiency of the warehouse.
UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the adviser and placement agent for the exercise.
Meanwhile, Yee Lee Corp Bhd, which owns a 32.07% stake in Spritzer, will see its equity interest being diluted to 27.89%.

Spritzer shares closed 19 sen higher at RM2.33 today before being suspended in the afternoon session.