Nova MSC eyes share sale for working capital

by **Cals** Tue 15 Sep 2015, 01:26

Nova MSC eyes share sale for working capital

By Supriya Surendran / theedgemarkets.com | September 14, 2015 : 6:45 PM MYT

KUALA LUMPUR (Sept 14): [size=16]Nova MSC Bhd is proposing to undertake a private placement which may raise some RM5.28 million, based on an illustrative price of 10.5 sen per placement share, mainly for working capital.

In its filing with Bursa Malaysia today, the company said the placement shares will be issued to third party investors to be identified, and at an issue price to be determined by the board and announced later.

The proposed private placement is expected to entail the issuance of 50.25 million Nova MSC shares, representing 10% of its enlarged issued and paid up share capital.

Using an illustrative price of 10.5 sen per placement share, which is priced at discount of 9.48% to the 5-day VWAP of Nova MSC shares up to and including Sept 11, 2015, the proposed private placement is expected to raise gross proceeds of up to RM5.28 million.

Of this, RM5.13 million is expected to be utilised for working capital purposes, while the remaining RM150,000 is expected to be used for the expense of the placement exercise.

Subject to prevailing market conditions, the placement may be implemented in one or more tranches, within six months after the receipt of all relevant approvals.

The placement shares will be issued based on a discount, if any, of not more than 10% to the 5-day volume weighted average price(VWAP) of Nova MSC Shares, immediately preceding the price-fixing date.

As the proposed private placement may be implemented in tranches within six months, there could potentially be several price fixing dates and issue prices.

(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.)
[/size]