In a filing with Bursa Malaysia, the printed circuit board maker said it planned to cancel 80 sen from the par value of its existing RM1 shares, following which it would make a bonus issue and a renounceable rights issue with free warrants.
The 1-for-1 bonus issue will comprise up to 65.75 million new 20 sen shares while the rights issue will consist of up to 262.99 million new shares given on the basis of four rights shares and three 3-year warrants for every two existing shares. The entitlement dates will be decided later.
In addition, PNE PCB is proposing an employee share option scheme involving up to 15% of its issued and paid-up share capital and an increase in its authorised share capital from RM100mil comprising RM1 shares to RM200mil comprising 20 sen shares.
On the par value reduction, PNE PCB said this would give rise to a credit of RM52.6mil, to be partly set off against its accumulated losses that stood at RM27.2mil as at Sept 30, 2014. For the nine-month period ended June 30, 2015, its retained group profit, with the addition of the credit, would be about RM44.25mil.
PNE PCB said it expected to raise a minimum of RM6.5mil from the proposed rights issue with warrants to meet the group’s funding requirements.
Under the maximum scenario, the company would raise RM52.6mil. Of that, PNE PCB would use up to RM15mil to upgrade existing production lines, up to RM12mil as part of the payment for lines to make new products, and up to RM15mil to finance potential acquisitions and/or investments.
It said the board was currently deliberating on expanding the company’s product offering by investing in new production lines.
“This allows the company to introduce a new product, namely the double-sided plated through hole printed circuit board. The new product is suited for the newer generation of electronics products, which involves slightly more complicated functions,” it explained.
The proposals are expected to be completed by the first quarter of 2016, PNE PCB said.
PNE PCB shares were untraded on Friday, with the last closing price on Thursday being RM1.00.