KUALA LUMPUR: Bright Packaging Industry Bhd plans to raise about RM47mil through a rights issue to purchase two new production lines.
In a statement here today, the company said the production line expansion is necessary to cope with increased demand for its products and services.
“We intend to raise funds by proposing a renounceable rights issue of 86.59 million new ordinary shares of 50 sen each, on the basis of two rights share for every one existing share held.
“This is together with 57.71 million free detachable warrants on the basis of two warrants for every three rights shares subscribed.
“The management intends to reward shareholders who have stood by the company and supported recent management changes by offering the rights share at a 59% discount to last Friday’s closing price of RM1.22,” it added.
Asia Media Group Bhd Founder and Chief Executive Officer Datuk Ricky Wong has emerged as a major shareholder with a 22.73% stake in the company and is poised to take up a director’s position soon.
He said the company, which represents a key element in its client’s supply chain and product image, has a lot of potential due to its recession-proof business model.
“This industry has high barriers to entry due to its capital intensive nature and is virtually non-accessible to new entrants attempting to penetrate the market. The stringent quality control imposed by clients also acts as an additional deterrent.
“I believe the company will be able to grow significantly by diversifying away from tobacco and liquor packaging. The infrastructure and technical know-how is already there,” Wong added. — Bernama
Bright Packaging is a market leader in the fast moving consumer goods packaging industry with clients that include Philip Morris, British American Tobacco, Diageo, Unilever and Procter & Gamble.