HLT to raise up to RM325m to fund expansion of glove making business
10 Aug 2020
HLT Global Bhd targets to raise between RM236.14 million and RM324.68 million through a private placement of up to 20% of its issued shares to fund the development of a new rubber glove manufacturing plant.
Currently, HLT has 527.11 million issued shares. It also has 184.45 million outstanding warrants expiring in 2022, as well as 13.17 million immediately exercisable options under the employees share option scheme (ESOS).
The private placement will add anywhere between 105.42 million or 144.95 million new HLT shares.
HLT’s indicative price for the placement share was RM2.24, representing a discount of 9.69% for the five-day volume weighted average price of HLT shares of RM2.48.
Of the proceeds, HLT said it intends to use between RM205 million and RM300 million to part-finance land acquisition and factory construction in relation to the rubber glove manufacturing business expansion.
“The business expansion shall be embarked through the acquisition of a piece of suitable land of between 30 acres and 50 acres, which shall be developed in multiple phases, with the first phase glove plant covering a land area of between 6 acres and 10 acres.
Through the construction and commissioning of the first phase glove plant, HLT expects to boost its rubber gloves production from the existing 1 billion pieces per year to between 4.1 billion and 5.3 billion pieces per year.
Shares of HLT fell 35 sen or 13.89% to close at RM2.17 today, valuing the rubber glove dipping line manufacturer at RM1.14 billion.
Source: The Edge Markets