Scomi Group to raise up to RM19m from private placement

PETALING JAYA: Scomi Group Bhd proposes a private placement exercise to raise up to RM19.02 million to fund its working capital.
The group said in a filing with the stock exchange that the proposed private placement may entail the issuance of between 109.37 million and 158.5 million shares, which will be placed out to independent third party investors to be identified and secured at a later date.
The indicative issue price is 12 sen per placement share, which is about the five-day volume weighted average price of 11.96 sen.
Scomi said proceeds from the placement exercise are intended to meet its working capital requirements such as operating expenses, payment for staff salaries and trade creditors.
It noted that the proposed private placement will enable the group to raise funds without incurring interest cost.
"The proposed private placement will also increase the capitalisation of the company and further strengthen the financial position of the Scomi group."
At the noon break, Scomi shares were unchanged at 11.5 sen on some 802,500 shares done.