KUALA LUMPUR: Malayan Cement Bhd’s proposal to raise RM226.95mil via a private placement may not go down well with investors as the stock emerged as the top loser on Bursa Malaysia.
The counter fell 6.67%, or 21 sen to RM2.94 with 741,000 shares traded. Year-to-date, the counter has appreciated some 17.6%.
The cement manufacturer plans to raise RM226.95mil via a private placement to be used for working capital and debt repayment.
It said the exercise involves the issuance of 85 million new shares, or 10% of its share capital of 849.7 million shares, to third party investors.
Based on an indicative price of RM2.67 per share, gross proceeds from the placement will be RM226.95mil, it said.
Malayan Cement said RM53.95mil of the proceeds will be used for working capital requirements, including for trade payables, operating expenses and administrative expenses.
Another RM170mil will be used to settle some of the group's debts.
As of June 30, 2020, Malayan Cement's bank borrowings stand at RM929.6mil.