KUALA LUMPUR (Jan 19): HO WAH GENTING BHD [] [] (HWGB) has proposed a private placement of up to 48.72 million new shares, or 10% of its paid-up, to third party investors to raise up to RM17.54 million.
HWGB said on Thursday the five-day weighted average market price of the HWGB shares up to Jan 18 was 40 sen.
“Based on an indicative issue price of 36 sen per placement, the company is expected to raise gross proceeds amounting up to RM17.54 million from the proposed private placement,” it said.
HWGB said the placement exercise would provide the group with more funds to finance its working capital requirements without incurring interest costs as compared to bank borrowings.
It expected the proceeds to reduce the borrowings of the HWGB group, thereby resulting in further interest savings.
HWGB said on Thursday the five-day weighted average market price of the HWGB shares up to Jan 18 was 40 sen.
“Based on an indicative issue price of 36 sen per placement, the company is expected to raise gross proceeds amounting up to RM17.54 million from the proposed private placement,” it said.
HWGB said the placement exercise would provide the group with more funds to finance its working capital requirements without incurring interest costs as compared to bank borrowings.
It expected the proceeds to reduce the borrowings of the HWGB group, thereby resulting in further interest savings.
