KENMARK Industrial Co (M) Bhd has proposed a private placement of 24 million new shares of RM1 each, representing 15.4% of its issued and paid-up capital, at a price to be determined later and pursuant to the company's proposed global depository receipt (GDR) programme.
In an announcement to the KLSE, Kenmark said the proceeds from the private placement would be mainly used to retire bank borrowings and as working capital. The company is principally involved in the manufacture of various wood-based products including multi-purpose cabinets, audio-visual stands, computer tables and compact disc and video racks.
Kenmark is also making a proposed offer for sale of 26 million shares of RM1 each in Kenmark by certain shareholders pursuant to the proposed GDR programme.
Kenmark proposes to sponsor a GDR programme in Taiwan involving the issue of Taiwan Depository Receipts (TDRs) to be represented by 50 million Kenmark shares, being the aggregate of the placement shares and offer shares (referred to as the underlying shares).
These underlying shares would represent 28% of the enlarged issued and paid-up share capital of Kenmark after the completion of the proposed private placement.
The proposals are conditional upon the approval of the relevant authorities.
Kenmark said a successful listing of the TDR issue in Taiwan represented by the underlying shares was likely to be a key milestone in the development of the local financial sector, and contribute to its greater integration with the international capital market.
It would also increase the visibility of both Malaysia and the KLSE, set an example for other Malaysian companies to tap the international markets, and provide foreign investors with options to trade in Malaysian securities.
TDRs are depository receipt certificates issued in Taiwan by a depository institution appointed by a foreign company or its shareholders, the value of which is represented by the underlying ownership of the securities of the foreign company.
Indirectly, they enable non-Taiwanese securities to be acquired and traded on the Taiwan Stock Exchange (TWSE). For TDRs to be traded on the TWSE, the total number of TDRs must not be less than 20 million units.
TDRs are mainly targeted at institutional investors and high net worth individuals who may usually take a longer holding position.
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