HB Global proposes private placement to raise RM23.1mil

HB Global executive director Keh Chuan Yee

KUALA LUMPUR: HB Global Ltd has proposed to undertake a private placement of up to 154 million new ordinary shares in the group, representing 20% of the existing issued shares.

HB Global said the placement shares would be issued based on a discount of not more than 20% to the volume-weighted average market price of HB Global shares for the five market days immediately preceding the price-fixing date.

Based on the illustrative issue price of 15 sen per placement share, HB Global is expected to raise gross proceeds of approximately RM23.10mil.

Executive director Keh Chuan Yee said: “We have earmarked more than 70% of the proceeds for the funding for future projects, mergers and acquisitions, investment in other complementary businesses or assets.”

“We expect the acquisition or investment to be within the food processing business segment, such as those relating to the processing, packaging and producing of variety ready-to-serve foods, as these businesses are deemed beneficial and are complementary to the group’s existing businesses,” he said in a statement.

Keh said the proposed private placement exercise would enable the group to raise additional funds without incurring interest costs compared to conventional bank borrowings.