PETALING JAYA: Alam Maritim Resources Bhd is proposing two private placements to raise a total of up to RM92.7 million for working capital purposes as well as to raise additional funds for the group’s service and maintenance of major vessels/ dry docking works.
In a Bursa filing, Alam Maritim said it is proposing a private placement of up to 10% of the total number of issued shares to third party investors at an issue price to be determined later (private placement 1).
It is also proposing a second private placement of up to 20% of the total number of its issued shares to third party investors to be identified later at an issue price to be determined (private placement 2).
According to its Bursa disclosure, the indicative issue price for private placement 1 is 15.5 sen, which will raise a minimum of RM16.6 million and a maximum of RM31.8 million.
Private placement 2’s indicative issue price is 13.5 sen, which will see a minimum and maximum scenario of RM31.7 million and RM60.96 million respectively.
Alam Maritim said private placement 1 will enable the company to raise additional funds without incurring interest costs, provides the company with an expeditious way of raising funds from the capital market, and Increases the size and strength of the company’s shareholders’ funds.
“The proposed private placement 2 is undertaken to raise additional funds for the group’s service and maintenance of major vessels/ dry docking works. In addition, the gross proceeds will be also used to fund the group’s immediate working capital requirements,” it said.
The proposals are expected to be completed by the first quarter of 2020.