Aturmaju aborts private placement plan due to drop in share price


KUALA LUMPUR: Aturmaju Resources Bhd (ARB) has decided to abort its proposed private placement due to market conditions, including the deteriorating market price of its shares.

In a filing with Bursa Malaysia on Tuesday, M&A Securities announced on behalf of the timber contractor and wood product maker that the board would explore alternative methods of fundraising to meet the group’s funding requirement.

On April 18, Aturmaju proposed a private placement of up to 6.11 million shares, or 10% of its issued share capital, to independent third party investor(s) to be identified at a later date.

On that day, its share price closed at 41 sen. Since then, the price has fallen 22% to close at 32 sen yesterday.

When it made the proposal, ARB had used 39.5 sen as the indicative issue price. That would have raised RM2.41mil, which it intended to use mainly as working capital.
 

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