KUALA LUMPUR: Rubberex Corp Bhd is seeking to raise RM31mil for the expansion of its nitrile disposable glove production line by placing out new shares in the company.
The stock climbed 28 sen to close at a new high of RM1.78 on Monday.
Shares in Rubberex had surged 180% since the of the year, as the novel coronavirus pandemic fuelled demand for the protective gear.
Rubberex, in a filing with Bursa Malaysia today, said the company has proposed a private placement exercise of up to 25.219 million new shares, or 10% of its total number of issued stocks.
The new shares will be issued at RM1.23 each. The placement exercise was targeted for completion by the third quarter.
The gross proceeds of RM30.7mil from the exercise will enable Rubberex to partially fund its expansion plan.
The remaining RM59.3mil of the total RM90mil expansion cost, the company said will be funded via proceeds from previous placement (RM15.5mil), disposal of manufacturing operations in China last year (RM42.1mil) and bank borrowings and/or internal funds (RM1.7mil).