Spritzer shares fall on news of private placement exercise

PETALING JAYA: Spritzer Bhd shares fell as much as 6.44% this morning, after it proposed a private placement exercise to raise RM63.81 million, based on an issue price of RM2.33 per share.

As at 10.54 am, its share price stood at RM2.18 with 23,000 shares changing hands. It has a market capitalisation of RM425.4 million.

Spritzer said it has proposed an issuance of up to 27.4 million new shares to Tasik Puncak Holdings Ltd.

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.

Meanwhile, Yee Lee Corp Bhd, which owns a 32.07% stake in Spritzer, will see its equity interest being diluted to 27.89%.

Spritzer said the group 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.