PETALING JAYA: Kejuruteraan Asastera Bhd (KAB) is expected to raise RM27.09 million through a proposed private placement exercise.
The group told Bursa Malaysia that the private placement involves up to 70.57 million new shares, representing up to 20% of its total number of issued shares.
KAB said it will utilise RM17 million for the expansion of customised energy efficiency solutions business; RM4.5 million for project costs and expenses; while RM4.69 million for the acquisition and/or investment in other complementary businesses and/or assets.
The group said after due consideration of the various methods of fund raising, the board is of the opinion that the proposed private placement is the most appropriate avenue of fund raising at this juncture.
This is because it would enable the group to raise additional funds expeditiously without having to incur interest costs or service principal repayments as compared to bank borrowings.
Source: The Sun Daily