PETALING JAYA: Packaging materials distributor D’nonce Technology Bhd plans to undertake a private placement exercise to raise RM6.08 million to repay bank borrowings.
In a filing with Bursa Malaysia, the group said based on an illustrative issue price of 33 sen per placement share and issuance of up to 18.43 million placement shares, the exercise is expected to generate gross proceeds of up to RM6.08 million. Of the proceeds, RM5.98 million has been allocated for repayment of bank borrowings and the rest for the proposed private placement expenses.
D’nonce said the exercise is not expected to have a material effect on the group’s earnings for the financial year ending Aug 31, 2018. However, the group said its earnings per share is expected to be diluted as a result of the increase in the number of shares pursuant to the issuance of placement shares.
Barring any unforeseen circumstance, it said the proposed private placement is expected to be completed by the first quarter of 2018.
Source: The Sun Daily