Prolexus proposes 5-for-1 rights issues to raise up to RM103mil

Prolexus executive director Datuk Au Yee Boon

KUALA LUMPUR: Prolexus Bhd has proposed a five-for-one renounceable rights issue to raise between RM16.2mil and RM102.6mil.

In a statement, Prolexus said the rights issues entailed the issuance of up to RM102.6mil of nominal value of 2.05 billion five-year, 0.1% irredeemable convertible unsecured loan stocks (ICULS) at 100% of its nominal value of RM0.05 each.

“The proposed rights issue will raise at least RM16.2mil, and up to a total of RM102.6mil will be raised under the maximum subscription level,” it said.

The proceeds raised from the proposed rights issue are intended for the installation of roof-top solar photovoltaic systems on Prolexus’ factories at Batu Pahat and Kluang, Johor, repayment of bank borrowings, as well as merger and acquisition (M&A) and/or investment opportunities that have growth potential and create value-added synergies to the group’s existing businesses.

“The installation of roof-top solar PV Systems is anticipated to produce up to 3.0 megawatts peak, channeling towards our factories' consumption. This signifies our pledge to environmental responsibility and positions us for substantial savings of up to RM1.5mil annually in electricity costs,” executive director Datuk Au Yee Boon said.