KUALA LUMPUR: Sarawak Consolidated Industries Bhd
(SCIB) is undertaking a corporate exercise comprising a renounceable rights issue with free detachable warrants that is expected to raise proceeds of up to RM53.45mil.
Concomitantly, the company has proposed to reduce its issued share capital by RM110mil. It said this will allow the company to rationalise and reflects its financial position and reflect more accurately the value of its underlying assets and finances.
The proposed rights issue - with an indicative issue price of seven sen per share - will entail the issuance of up to 763.62 million new shares with up to 763.62 million free detachable warrants on the basis of one rights share for every one existing SCIB share held, and one free warrant for every one rights share subscribed.
SCIB said the funds raised will be allocated towards the construction of a new factory, acquisition of factory machinery, partial repayment of bank borrowings, working capital requirements, and expenses related to the proposed corporate exercises.
"The fresh capital injection will reinforce SCIB’s liquidity and operational capacity, particularly in its core manufacturing and engineering, procurement, construction and commissioning (EPCC) segments, as it scales participation in major infrastructure projects across East Malaysia and beyond," it said in a statement.
SCIB executive chairman and major shareholder Datuk Chong Loon Men said he is undertaking to subscribe to 143 million rights shares as a demonstration of his continued confidence in the company's prospects
"We are laying a solid foundation for long-term growth and operational scalability, especially as we align ourselves with the robust infrastructure agenda in Sarawak and the wider region.
"These corporate initiatives will allow us to be more agile financially and create sustainable value for all stakeholders," he said .
