Serba Dinamik falls by as much as 9.4% after announcement of private placement

KUALA LUMPUR (Dec 9): Serba Dinamik Holdings Bhd declined by as much as 9.42% this morning following the announcement of its private placement yesterday.

The counter reaches its intra-morning low of RM1.73 at around 10.30am. Since then, it has pared some of the losses seen earlier in the morning.

As at 11.11am, its shares were trading 7.33% or 14 sen lower at RM1.77, valuing it at RM6 billion. It was the 13th top loser on the local bourse today.

Meanwhile, it saw 31.52 million shares done at the time of writing.

The company announced yesterday that it plans to raise RM515.35 million from the issue of 336.83 million new shares (or 10% of its issued share capital).

RM100 million will go to the partial repayment of RM626.99 million worth of borrowings, while another RM100 million will be used as capital expenditure at its Teluk Ramunia Yard in Johor.

Meanwhile, RM303.46 million from the proceeds will be used for two projects in Abu Dhabi.

It also noted that its managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah, who is also the group’s largest shareholder, may participate in the book-building exercise for the placement.

It will call an extraordinary general meeting (EGM) for the placement of 101.05 million shares to Abdul Karim, which will be part of the private placement.

Abdul Karim, alongside directors Datuk Abdul Kadier Sahib and Datuk Awang Daud Awang Putera, are interested parties in the placement of shares to Abdul Karim. They will abstain from voting on the matter at board meetings and at the EGM.

The group said Abdul Karim's stake cannot exceed 32.9%, or the collective shareholding of Abdul Karim, Abdul Kadier and Awang Daud cannot increase by more than 2% in the six months after the placement is completed, in the event their shareholdings are in excess of 33% prior to the placement of shares to Abdul Karim.

This is to ensure that a mandatory takeover offer is not triggered.