PETALING JAYA: NWP Holdings Bhd proposes to undertake a private placement exercise to raise up to RM3.15 million.
In a filing with the stock exchange, the group said under the maximum scenario, it will issue up to RM39.42 million shares, representing not more than 10% of its enlarged issued shares.
NWP, which is involved in the manufacturing and trading of a wide range of timber products, intends to place out the shares to independent third party investors.
Based on an indicative issue price of 8 sen per share, the group is expected to raise up to RM3.15 million, bulk of which will be used for performance bond payment to Borneo Resources.
The remaining of the proceeds will be utilised for staff cost and administrative expenses.
The group said it had considered various methods of fund raising and is of the view that the proposed private placement is the most appropriate avenue of fund raising.
In a separate filing, NWP said its wholly owned subsidiary NWP Industries Sdn Bhd has been appointed by Borneo Resources as the sole and exclusive party to carry out the activities to clear, fell, extract, remove, sell and deliver all timber, trees and logs products on the 605.9-hectare forest area in Kg. Mindohuan in Ranau, Sabah.
It will provide stable supply of raw material to the group, which has been affected by the shortage of raw materials, and is expected to improve the group’s performance and profitability.
Source: The Sun Daily