Rubberex proposes 10% private placement to fund new production lines
21 Jun 2021
Rubberex Corp (M) Bhd has proposed a private placement of up to 83.23 million shares or 10% of its share capital to raise RM78.65 million.
From the proceeds to be raised – based on an indicative issue price of 94.5 sen per placement share – some RM69.13 million will be used to acquire 28 double-formers nitrile disposable glove production lines as part of its expansion in Perak, the company said. Another RM9 million will be used for working capital.
The Perak expansion will see an additional production capacity of up to 7.5 billion pieces of nitrile gloves per year. Total cost for the acquisition and installation of the production lines is at an estimated RM400 million, the glove maker said.
Post-placement, Rubberex largest shareholder Datuk Eddie One Choo Meng will see his shareholding trimmed to 33.86% from 37.24% currently.
Shares of Rubberex settled 2 sen or 1.92% lower at RM1.02 today, valuing the glove maker at RM848.92 million.
Source: The Edge Markets