Spritzer to raise RM64m via private placement

Spritzer Bhd is planning to issue new shares equivalent to 15% of its equity to a private equity fund to raise up to RM63.8 million.

In a filing to Bursa Malaysia last Thursday, the bottled water maker noted the private placement to Singapore-based Dymon Asia Capital Ltd involves a placement of 27.39 million new shares at RM2.33 a piece.

Proceeds will be channelled to fund the construction of an automated warehouse in Taiping, Perak, to increase its warehouse space by 105,820 sq ft. This is to improve productivity and increase the efficiency of its existing warehouse. Some of the money will be used as working capital. The corporate exercise would allow the company to preserve cashflow for reinvestment or operational purposes.

The proposed private placement is expected to be completed by the fourth quarter of 2017.