QES raises RM20.4mil via private placement exercise
11 Sep 2020
QES Group Bhd (QES) will undertake a private placement exercise to raise up to RM20.47 million for its business expansion.
In its filing with Bursa Malaysia today, QES said the company is proposing to conduct a private placement of up to 10 per cent of its issued ordinary shares to third party investors.
Proceeds from the exercise will be used for factory expansion, research and development (R&D) for future products, market expansion to China and future working capital.
“The private placement will enable the group to raise funds more expeditiously and in a more cost-effective manner as opposed to other fund raising options such as a pro-rata issuance of securities like right issue, which would typically entail a longer implementation process.
“It will enable the group to raise added funds for its business expansion and working capital purposes, which are expected to contribute positively to the future earnings potential,” it said.
QES has a share capital of RM61.18 million, comprising 758.30 million shares, and the new placement will involve the issuance of up to 75.83 million new shares.
“The board will take into consideration, among others, the prevailing market conditions and the provisions of Rule 6.05(a) of the ACE Market listing requirements of Bursa Securities, in determining the issue price of the placement shares.
“The issue price shall not be a discount of more than 10 per cent to the volume weighted average market price of QES shares for the five market days immediately preceding the price fixing dates,” it added.
Source: NST Posted on : 11 September 2020