News

Coraza proposes RM43.5m special issue to Bumiputera investors

The special issue will enable the sheet metal work manufacturer to comply with the Bumiputera equity condition to be listed on the ACE Market

by S BIRRUNTHA / pic source corazaintech.com

CORAZA Integrated Technology Bhd has proposed to undertake a special issue of 61.2 million new shares to Bumiputera investors, which is estimated to raise some RM43.45 million based on an indicative issue price of 71 sen per share.

The special issue will also enable the sheet metal work manufacturing company to comply with the Bumiputera equity condition to be listed on the ACE Market.

Coraza was listed on ACE Market on Jan 20, 2022, under the condition that it allocates at least 12.5% of its enlarged share base to Bumiputera investors.

The indicative issue price represents a discount of 9.21% to the five-day volume weighted average market price to Aug 12 of 78.20 sen, Coraza said in a filing to Bursa Malaysia yesterday.

The group noted that it has earmarked RM24 million from the proceeds to purchase new machineries due to the growth in the industry as well as the anticipation of increase in demand from existing and potential customers.

“As at latest practical date, the group has purchased and drawn down its trade lines amounting to RM4.2 million for nine control numerical control machines (RM3.2 million), two quality assurance machines (RM800,000) and machine programming (RM200,000).  

“These machineries are used for the group’s precision machining activities and are installed at a rental factory located at Kulim, Kedah, which was commissioned during the second quarter of 2022 (2Q22),” it said.

Coraza added that for the aforementioned acquisitions totalling RM4.2 million, the proceeds raised from the proposed special issue will be used to repay the bank borrowings undertaken to finance the purchase and will save the group annual interests cost of approximately RM100,000 based on an interest rate of 2.7% per annum.

It added that RM15 million worth of machineries will be purchased within the next two years for another rented factory located at Kulim, Kedah.

M&A Securities Sdn Bhd has been appointed as the principal advisor and placement agent for this corporate exercise, which is expected to be completed by 4Q22.

Coraza’s shares closed half a sen or 0.6% higher at RM0.84 yesterday, for a market capitalisation of RM361.94 million.

Dzul

Recent Posts

C4 calls for ‘transparent’ probe on PN govt’s spending

The current administration must ensure the progress reports is publicly available and accessible, and provide…

8 hours ago

Labor shortage to cost Malaysia palm oil sector RM20b

A chronic shortage of plantation workers in Malaysia may cost palm oil producers about RM20…

8 hours ago

Saudi Arabia says China’s Xi to visit this week

Saudi Arabia said Chinese President Xi Jinping (picture) will visit the kingdom from Wednesday for a…

8 hours ago

Bosnia may be granted EU candidacy status as early as next week

European Union leaders may grant Bosnia-Herzegovina official candidacy status as early as Dec. 15’s summit…

8 hours ago

What does world economy look like through 2075? Here’s what Goldman Sachs thinks

Goldman Sachs Group Inc. economists have taken a stab at predicting the path of the…

9 hours ago

Key ASIC wins 2 contracts worth over RM26m

KEY ASIC Bhd has bagged two application specific integrated circuit (ASIC) contracts worth over RM26 million…

9 hours ago