T7 Global plans to raise RM40m via private placement

PETALING JAYA: T7 Global Bhd is embarking on a private placement exercise of up to 20% of its issued share capital to raise up to RM39.68 million in proceed, for expenses related to its diversification into the manufacturing and treatment of aerospace parts, among others.
The group said in a bourse filing that based on an issue price of 42 sen per share, it could be raising between RM35.86 million and RM39.68 million in proceeds.
The group will be allocating RM30 million from the proceeds raised to set up a specialised metal treatment plant for the new business.
In addition to that, it will be deploying some RM4.82-5 million for working capital.
In the event of a maximum scenario, it could be allocating the excess amount of RM 3.55 million raised as working capital for upgrading of combat management system for Royal Malaysian Navy’s vessel.
T7 Group has entered into a 60-40% designation with KOV Limited to set up T7 Kilgour to venture into the new business segment to diversify its income stream amid a challenging oil and gas sector in which it operates in.
In addition to that, it has also proposed for a share buyback of up to 10% of its issued shares to reduce the volatility of its shares.
T7’s shares fell 1.09% to close at 45.5sen with some 526,600 shares done.