KUALA LUMPUR: Central Global Bhd (CGB) has proposed a private placement of up to 18 million new shares representing not more than 20% of its total number of issued shares to qualified third-party investors to be identified at a later date.
In a statement Tuesday, CGB said the proposed placement may be implemented in several tranches within six months from the date of approval from Bursa Malaysia Securities.
It added that there would potentially be several price-fixing dates and issue prices of the placement shares to be determined separately and fixed by the board of directors of CGB after the approval from Bursa Securities.
These new shares will carry the same rights as the existing issued shares.
The specialised industrial tapes and label stocks manufacturer said the proceeds from the private placement would be used for a new masking tape coater production line, funding for an existing construction project, working capital and, estimated expenses related to the private placement exercise.
CGB executive chairman Datuk Faisal Zelman said the private placement exercise was in line with its plans for the production of masking tapes in the Group’s manufacturing business.
“We want to focus on keeping critical production volumes up, undertake efforts to drive efficiencies in production that can minimise wastage as well as ensure consistency in product quality, which is key to recurring orders especially for our export orders.”
“We are also using the proceeds to fund a project in Pulau Pinang from our construction business. We were awarded this project in January 2020 and work commenced in July 2020. We will continue to undertake construction projects and have tendered for several projects.
“A portion of the proceeds from the private placement exercise will also be used for working capital purposes as well as accelerating future business expansion,” he said.
TA Securities Holdings Bhd is the advisor and placement agent for the proposed private placement.