FTSE Bursa Malaysia KLCI (^KLSE) 1,646.53 14.83 (0.90%)
updated at: Wed, 09 Dec 2020, 05:25PM MYT

Majuperak proposes private placement to raise funds for capex, facility management project

Original Source From TheEdge Publish at Tue, 24 Dec 2019, 09:21AM

KUALA LUMPUR (Dec 24): Majuperak Holdings Bhd has proposed a private placement exercise to raise funds for capital expenditure (capex) purposes, repayment of bank borrowings and for a facility management project.

According to a bourse filing, the company intends to issue up to 25.71 million new shares, representing not more than 10% of its total number of issued shares.

Assuming an indicative issue price of 31.5 sen per share, the proposed placement may raise up to RM8.1 million.

Out of the total amount of proceeds expected to be raised, RM2.32 million has been earmarked for a facility management project involving the provision of clinical support service to clinics in Perak and Melaka.

Meanwhile, RM1.34 million will be used for capex purposes, namely for the upkeep of a solar power plant, office renovation and purchase of new equipment.

RM2 million has been allocated for the settlement of its existing overdraft facility with Bank Islam Malaysia Bhd, while the balance of the proceeds will be used for working capital purposes and to cover estimated expenses in relation to the proposal.

"After having considered various fund raising options, the board is of the opinion that the proposed private placement is currently an appropriate avenue of fund raising as it enables the group to raise funds expeditiously without incurring interest cost," said Majuperak.

The company expects to complete the proposal in the first half of 2020.

Majuperak's share price rose one sen or 2.99% to close at 34.5 sen, giving a market capitalisation of RM88.68 million.

updated at: Fri, 29 May 2020 MYT
Participation (%)
Bought (MYR)
Sold (MYR)
Net
Foreign
( 24,36 % )
2.31 B 2.23 B 77.37 M
Local Institution
( 39,38 % )
3.66 B 3.67 B 0.00 B
Local Retail
( 36,26 % )
3.34 B 3.41 B -0.07 B