Seacera plans private placement to raise RM18.93m

by **Cals** Sat 09 Jan 2016, 01:55

Seacera plans private placement to raise RM18.93m

By Gho Chee Yuan / theedgemarkets.com | January 8, 2016 : 8:29 PM MYT

KUALA LUMPUR (Jan 8): [size=16]Seacera Group Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 2.30) is proposing a private placement of up to 18.93 million shares, which could raise as much as RM18.93 million based on an indicative issue price of RM1 apiece, to be used mainly in its property and construction businesses.

In a filing with Bursa Malaysia today, the ceramic tiles manufacturer said the new shares, which represent about 10% of its total issued and paid-up share capital, are meant to be issued to independent third party investors to be identified later.

It added that the placement shares will be priced at a discount of not more than 10% to the five-day volume weighted average market price (5D-WAMP), immediately preceding the price fixing date, but will not be lower than the RM1 par value of its shares.

Of the expected proceeds to be raised, it said RM10 million will be set aside for property development activities, which will be utilised within 12 months.

Some RM8.48 million will be for construction activities, while the remainder will be used to defer expenses incurred for the corporate exercise.

Seacera noted its gearing could be reduced to as much as 0.21 times from 0.27 times upon completion of the proposed exercise, which it expects to be completed by the first quarter of 2016.

It is also proposing the establishment of a five-year employee share option scheme (ESOS), which will involve no more than 15% of its total issued and paid-up share capital, at an exercise price to be fixed, to raise proceeds for the group's future working capital requirements.

The company has obtained the approval of its shareholders at the last annual general meeting in June last year to issue new Seacera shares as and when it sees fit, provided the aggregate number of Seacera shares to be issued does not exceed 10% of the group's issued and paid-up share capital.

Hence, the group will only be seeking shareholders' approval for the proposed ESOS at an extraordinary general meeting to be convened.

Shares in Seacera closed up 12 sen or 10.43% at RM1.27 today, bringing it a market capitalisation of RM240.4 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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