Benalec to raise up to RM31.4m via private placement

PETALING JAYA: Benalec Holdings Bhd has proposed to undertake a private placement exercise to raise up to RM31.4 million.
The group said in a stock exchange filing that based on an illustrative issue price of 28 sen per placement share and the issuance of up to 112.2 million placement shares, the proposed private placement is expected to raise gross proceeds of up to RM31.4 million.
A bulk of the proceeds ranging between RM12.07 million and RM21.12 million will be allotted to fund the group’s ongoing and future land reclamation projects, while RM10 million has been earmarked for working capital.
"The placement shares will be placed out to third party investors to be identified later," it added.
The group expects the proposed private placement will contribute positively to its future earnings. The exercise is expected to be completed by the second quarter of this year.
Benalec closed half a sen or 1.56% lower at 31.5 sen, with some 324,000 shares done.