KUALA LUMPUR: Key Asic Bhd
has proposed a private placement of up to 222,743,750 shares or 25% of the company's issued share capital for an illustrative issue price of RM66.8mil.
According to Key Asic, a systems products manufacturer, the investors of the proposed share placement have yet to be identified.
It added that the placement could be implemented in several tranches with the issue prices determined by prevailing market conditions and the five-day volume weighted average market price (VWAP) of Key Asic shares before the price fixing date.
The group expects the corporate exercise to be completed by the first half of 2018.
According to Key Asic's filing with Bursa Malaysia, the proceeds of the share placement will go towards the company's working capital for its operations.
Subsequent to the share placement, the group's share capital will increase to RM114.22mil from RM47.4mil with the net assets of the group rising to RM85.68mil from RM21.16mil. Net assets per share will increase to 7.69 sen from 2.38 sen
The share placement will also dilute the shareholdings of the existing substantial shareholders - Key Asic Ltd and Atlantic Quantum Sdn Bhd - to 29.26% and 14.9% respectively.
Key Asic has seen buying interest in the lead up to the corporate exercise, jumping 10 sen or 58% to 27 sen a share on the back of over 248 million shares done on Oct 11, 2017.
Trading in the counter was halted at 2.30pm on Tuesday and resumed at 3.30pm. At the time of the trading halt, the counter was trading unchanged at 29 sen with a turnover of 11.7 million shares.
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