KUALA LUMPUR: China-based sports shoe and apparel maker XiDeLang Holdings Ltd is hoping to raise up to RM29.7 million via a proposed private placement, bonus issue and rights issue of warrants.
In a filing with Bursa Malaysia yesterday, XiDeLang said it is proposing a private placement of up to 43.99 million new shares to be placed with independent third party investors to be identified at a later date.
It is also proposing a one-for-two renounceable rights issue of up to 241.99 million warrants at an issue price of five sen, and a two-for-one bonus issue of up to 241.99 million new shares.
XiDeLang said the private placement and rights issue are expected to raise up to RM29.7 million, which would mainly be utilised to purchase machinery and equipment for its new design and production centre.
The company is currently building its new 128,000 sq m design and production centre to be completed in the first half of 2012.
The company said the proposed bonus issue would increase its share capital to better reflect its operations, which are currently expanding.
The exercises are expected to increase its issued and paid-up shares to 967.99 million from 439.99 million as at Jan 13, while its share capital would increase to US$96.79 million (RM302 million) from US$43.99 million. Its net assets per share would fall to 38 sen from 56 sen while gearing would improve to 0.05 times from 0.09 times.
XiDeLang did not state who the intended investors for the private placement are.
Recently, a vernacular paper reported that Navis Capital Partners, a Malaysia-based private equity firm, was looking to purchase Hong Peng International Holdings Ltd’s 54.55% stake in XiDeLang. However, XiDeLang denied it in a Bursa announcement but noted that it was looking at corporate proposals to enhance shareholders’ and company value.
XiDeLang rose to a three-month high of 41 sen on Jan 5 before it closed at 39 sen yesterday. Prior to that, XiDeLang was trading between 29.5 sen and 33.5 sen.
This article appeared in The Edge Financial Daily, January 19, 2012.
In a filing with Bursa Malaysia yesterday, XiDeLang said it is proposing a private placement of up to 43.99 million new shares to be placed with independent third party investors to be identified at a later date.
It is also proposing a one-for-two renounceable rights issue of up to 241.99 million warrants at an issue price of five sen, and a two-for-one bonus issue of up to 241.99 million new shares.
XiDeLang said the private placement and rights issue are expected to raise up to RM29.7 million, which would mainly be utilised to purchase machinery and equipment for its new design and production centre.
The company is currently building its new 128,000 sq m design and production centre to be completed in the first half of 2012.
The company said the proposed bonus issue would increase its share capital to better reflect its operations, which are currently expanding.
The exercises are expected to increase its issued and paid-up shares to 967.99 million from 439.99 million as at Jan 13, while its share capital would increase to US$96.79 million (RM302 million) from US$43.99 million. Its net assets per share would fall to 38 sen from 56 sen while gearing would improve to 0.05 times from 0.09 times.
XiDeLang did not state who the intended investors for the private placement are.
Recently, a vernacular paper reported that Navis Capital Partners, a Malaysia-based private equity firm, was looking to purchase Hong Peng International Holdings Ltd’s 54.55% stake in XiDeLang. However, XiDeLang denied it in a Bursa announcement but noted that it was looking at corporate proposals to enhance shareholders’ and company value.
XiDeLang rose to a three-month high of 41 sen on Jan 5 before it closed at 39 sen yesterday. Prior to that, XiDeLang was trading between 29.5 sen and 33.5 sen.
This article appeared in The Edge Financial Daily, January 19, 2012.
