KUALA LUMPUR: Glove maker Careplus Group Bhd has proposed to raise as much as RM83mil cash for capacity expansion by placing out new shares to investors.
The proposed private placement exercise involved the issuance of up to 53.135 million shares, or 10% of its current share capital.
"The Proposed Private Placement will allow the Company to expediently raise funds for the capital expenditure and working capital of the Group," it said in a filing with Bursa Malaysia today.
The company has assumed the issue price at RM1.56. Shares in Careplus were last traded at RM1.46 on Friday.
"On behalf of the Board, we wish to emphasize that the pro forma effects for the Proposed Private Placement in this section are based on the above assumption which are strictly for illustrative purposes only and should not be regarded as an indication to the fixed issue price for the Placement Shares," it said.
Proceeds from the proposed placement exercise has been earmarked for the purchase of machineries worth RM96mil for the setting up of 11 new production lines and a surgical packaging machine.
"The shortfall of approximately RM19.5mil million is expected to be funded via internally generated funds of the Group as well as funding contribution from Ansell Services (Asia) Sdn Bhd, being the joint venture partner of the Group," it said.
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