Press Steel to lift RM1bil by way of personal placement

PETALING JAYA: Press Steel Aluminum Holdings Bhd has proposed a personal placement train to lift as much as RM1bil to finance its working capital, capital expenditure (capex) and reimbursement of borrowings.

The corporate mentioned in a submitting with Bursa Malaysia, the proposed train would entail an issuance of as much as 163.4 million new Press Steel shares, representing roughly 2% of the full variety of the corporate’s issued shares as at March 15, 2022, being the newest practicable date (LPD) previous to this announcement, at a problem value to be decided and introduced later.

Based mostly on an illustrative problem value of RM6.12 per placement share, the proposed train was anticipated to lift gross proceeds of roughly RM1bil. Of the quantity, Press Steel deliberate to allocate RM670mil for working capital, RM210mil for capex, and RM120mil for reimbursement of borrowings.

The illustrative problem value of RM6.12 per placement share represented a reduction of roughly 5% to the five-day quantity weighted common market value of Press Steel shares as much as and together with the LPD of RM6.4391, has been assumed.

Barring any unexpected circumstances, the proposed placement is anticipated to be accomplished by the second quarter of 2022.


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