Raya International plans rights issue to raise up to RM22.07m

PETALING JAYA: Raya International Bhd proposes to raise up to RM22.07 million through a rights issue exercise, which will be partly used to fund the acquisition of two vessels for RM6 million.
This comes about a year since a private placement exercise in 2015 and just months after it held a special bumiputra issue earlier this year.
In a filing with the stock exchange, it said the rights issue, which entails the issuance of up to 183.95 million new shares, is undertaken on the basis of one rights share for every one existing Raya share held.
The purchase prices for Sturgeon and Straits 1 are RM3.2 million and RM2.8 million, respectively.
Based on an indicative issue price of 12 sen per rights share, the rights issue is expected to raise up to RM22.07 million, to fund the acquisition of Straits 1 and as working capital.
The proposed rights issue will be implemented after the completion of the acquisition of Sturgeon.
Raya International is involved in the distribution of water filter components and the trading of fast moving consumer goods for supply to government flood aid recipients. It started diversifying into the oil bunkering services business in last June.
The company said the acquisition will enable it to own and operate its own vessels instead of solely relying on chartered vessels.
“The proposed acquisitions is undertaken to support the group’s ongoing business and is in line with the company’s strategy to expand its asset base, strengthen its operating capabilities and broaden its geographical coverage,” it explained.