Ralco Corp proposes to place out up to 10% of issued shares

PETALING JAYA: Manufacturer and trader of plastic products Ralco Corp Bhd proposes to undertake a private placement of up to 10% of its issued shares to raise up to RM3.2 million for purchase of property, plant and equipment; construction of a new clean room facility in Nilai, and renovation of Nilai and Skudai manufacturing plants.
The proposed placement, to yet to be identified investors, is expected to strengthen the capital position of Ralco and allow the group to raise the necessary funding to finance its capital expenditure requirements without incurring additional financing cost.
"The board is thus of the opinion that the proposed private placement is the most cost-effective way to meet the group’s funding needs in the short-term and also the most expeditious way of fund raising from the capital market as opposed to other forms of fundraising, as the company has procured the shareholders’ mandate," it said.
The stock was untraded.