KUALA LUMPUR: Loss making company Scomi Group Bhd has proposed to raise as much as RM214mil by selling new rights shares and warrants.
The company said it has secured substantial shareholder IJM Corp Bhd ’s support for the fundraising.
To make way for the new issuances, Scomi said it would first undertake a capital reduction and share consolidation exercise.
“The proposed share capital reduction will serve to rationalise the statement of financial position of the company whereby the credit arising thereof may be used to set-off against future losses of the company in the near future,” it said in a filing with Bursa Malaysia.
After that, Scomi plans to consolidate every four existing shares into one share. This is to facilitate the new issuance of rights shares with warrants, as well as new shares to be issued to Malayan Banking Bhd (Maybank) as part of a debt settlement plan.
This means Maybank will end up with at least 5% stake in Scomi.
Scomi said it hoped to raise at least RM75mil from the exercise.
IJM Corp, which owns a 21.4% stake in Scomi, has given its undertaking to subscribe its portion of allotted stocks.
According to the filing, the builder will pump in RM31.6mil into Scomi for new rights shares and warrants.
Hong Kong-based Sharp Ascend Ltd has also given its undertaking to come in with a minimum subscription of RM20mil, while Scomi’s chief executive officer Sammy Tse Kwok Fai will take up another RM3mil worth of rights shares.