Envair proposes private placement

KUALA LUMPUR: Envair Holding Bhd has proposed a private placement of up to 35.57 million new shares, representing 30 per cent of its issued and paid-up capital.

The exercise is part of the firm's plan to venture into the distribution and trading of oil and gas products.

The shares will be placed out to major shareholder Deepak Jaikishan, Envair directors Mohd Anuar Mohd Hanadzlah and Mohd Shukri Abdullah, as well as an independent investor to be identified at a later date.

Under the proposed deal, about half, or 18 million new shares, will be placed to Deepak. The yet-to-be-identified independent investor will have about 16 million units.

Based on the indicative issue price of 27.5 sen per placement share, the exercise will raise a gross proceed of up to RM9.78 million.

The proceeds will then be utilised by Envair mainly for working capital in relation to the proposed new business of the group - the distribution and trading of oil and gas products.

"The proposed private placement would allow the company to raise funds immediately to mainly reduce the group's borrowings and to partially fund the proposed joint collaboration between Envair Energy Sdn Bhd and Resscom Petroleum Sdn Bhd for the distribution and trading of oil and gas products.

"In addition, the proposed private placement will serve to increase the capitalisation of the company and further strengthen the balance sheet of the group," Envair said in its filing to Bursa Malaysia last Friday.