PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) is proposing to undertake a private placement of up to 36.75 million new SCIB shares, representing a 30% stake, at an indicative issue price of RM1.81.
This is expected to raise gross proceeds of RM66.52 million, which will go towards working capital and estimated expenses for future projects.
The group is also proposing a recurrent related party transaction with Serba Dinamik Holdings Bhd.
SCIB’s non-independent, non-executive chairman Datuk Mohd Abdul Karim Abdullah who holds approximately 47.5% stake in the group, also holds the position of group managing director and CEO in Serba Dinamik with an estimated equity stake of 21.5%.
According to the group’s Bursa filing, SCIB is expected to secure several projects from Serba Dinamik for the provision of construction and project management services and the supply of precast products and construction materials for overseas and local projects with a variety of tenure ranging from 24 to 36 months.
The total estimated contract sum of the projects is estimated to be RM1.37 billion.
“The acceptance of projects to be awarded by Serba Dinamik is expected to increase the order book and earnings of the construction and manufacturing business segments of SCIB Group,” it said.
Currently SCIB’s orderbook stands at RM1.09 billion, of which approximately 95.6% is contributed by its construction segment.
In addition, the group noted that the acceptance of these projects and the award of future projects on recurrent basis would enable it to gradually expand its geographical presence to other regions for instance, the Middle East region.
The proposed private placement is expected to be completed by the fourth quarter of this year.
