PETALING JAYA: Handal Resources Bhd is looking to raise up to RM5.04 million via a proposed private placement to fund potential new projects.
In a filing with Bursa Malaysia, the group said it has proposed to undertake a private placement of up to 10% of the total number of issued shares to third party investors to be identified later.
Based on the indicative issue price of 31.53 sen per share, the proposed private placement is expected to raise gross proceeds of up to RM5.04 million. The group plans to use the proceeds as funding for potential new projects.
Handal’s wholly owned subsidiary Handal Offshore Services Sdn Bhd provides integrated crane services which includes the provision of maintenance and services for offshore pedestal cranes in the upstream oil and gas sector. It also fabricates new offshore pedestal cranes and provides offshore crane rentals to clients.
Through its other subsidiaries, Handal is also actively expanding in other areas of oil and gas, which includes provision of hydraulic workover units and other downstream maintenance support activities.
Handal has tendered for projects in the oil and gas sector with an expected total contract value of RM125 million.
The proceeds earmarked for funding of potential new projects will generally be used for capital expenditure, which may include the purchase of additional equipment and/or purchase of offshore cranes.
