KUALA LUMPUR: Candy confectionery manufacturer and distributor Khee San Bhd
(KSB) expects to raise between RM65 million and RM96.1 million via a proposed rights issue.
As part of its regularisation plan, KSB outlined that the proposed exercise involves the issuance of up to 960.96 million shares at 10 sen each, and up to 549.12 million warrants, with four warrants for every seven rights subscribed.
In a statement today, the company said proceeds from the rights issue will be strategically invested to drive KSB’s growth trajectory in both domestic and export markets.
"KSB plans to use the funds to increase production capacity by adding new high-speed manufacturing lines to meet growing demand and improve operational efficiency," it said.
The group also aims to expand its presence in key international markets, including New Zealand, Mauritius and Taiwan, by strengthening its distribution network and introducing innovative new products.
By solidifying its cash reserves, maintaining zero debt levels, accelerating market expansion, and implementing an employee share scheme to attract and retain talent, KSB aims to enhance profitability and rebuild financial resilience.
KSB formalised an underwriting agreement today with M&A Securities Sdn Bhd as the principal advisor and managing underwriter, alongside Kenanga Investment Bank Bhd and Malacca Securities Sdn Bhd, for the exercise.
Executive chairman Yong Loong Chen said the underwriting agreement reflects stakeholders’ confidence in KSB’s recovery and growth potential.
"With seven consecutive quarters of profitable results and clear expansion plans, KSB is well-positioned to accelerate growth domestically and internationally, continuing our legacy as a trusted Malaysian confectionery brand for over seven decades," he said. - Bernama
