Hot Stock Raya International up 1.85% on special issue plan

by **Cals** Sat 06 Feb 2016, 02:19

Hot Stock

[size=28]Raya International up 1.85% on special issue plan

By Surin Murugiah / theedgemarkets.com | February 5, 2016 : 11:30 AM MYT

KUALA LUMPUR (Feb 5): Raya International Bhd shares gained 1.85% albeit thin trading volume after it proposed a special Bumiputera issue of up to 20.5 million Raya shares, representing approximately 12.5% of its issued and paid-up share capital, to Bumiputera investors to be identified later, to raise gross proceeds of up to RM4.51 million, at an indicative price of 22 sen per share.

At 10.49am, Raya rose 0.5 sen to 27.5 sen with 14,000 shares done.

Raya, which is involved in the distribution of water filter components and the trading of fast moving consumer goods, also plans to diversify its principal activities to include oil bunkering and the trading of oil related products.

The group told the bourse yesterday that it is no longer manufacturing its water and air filter products since early 2014, as they are not cost-competitive against other cheaper and imported products.

It added that the group had incorporated Selatan Bunker (M) Sdn Bhd in September 2015 to initiate the diversification. Selatan Bunker is also in the midst of applying for the necessary licensing for oil bunkering and trading activities.

"Barring any unforeseen circumstances, the diversification plan is expected to contribute 25% or more of the net profits of the group and may result in a diversion of more than 25% of the net asset of the group, to an operation which differs widely from its current operations," it said.

The Bumiputera issuance is to meet its Bumiputera equity requirement.
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