PETALING JAYA: Asia Brands Bhd (ABB) has aborted its private placement exercise to issue up to 46.53 million new shares, representing up to 20% of its enlarged issued shares.
This is because it had achieved its objective to raise funds from its rights issue exercise for the repayment of the Islamic medium term notes (Tranche 1, Series 3) of RM40 million due on March 18, it told the stock exchange today.
The rights issue exercise, which involves an issuance of up to 116.32 million new shares at an issue price of 35 sen per rights share on the basis of one right share for every one share held, was aimed to raise gross proceeds of between RM30.15 million and RM40.71 million.
ABB said the private placement was proposed to be implemented to facilitate the group to comply with the public shareholding spread requirement under Paragraph 8.02(1) of the Listing Requirements of Bursa Securities in the event ABB’s public shareholding spread falls below 25% following the implementation of the rights issue.
“As the public shareholding spread of ABB after the implementation of the rights issue remains above 25%, ABB has decided not to proceed with the implementation of the private placement,” it added.
Based on an indicative issue price of 50 sen per placement share, the private placement was previously expected to raise gross proceeds of up to RM23.26 million.
