KUALA LUMPUR, Feb 14 — HB Global Ltd (HBGL), a gourmet convenient food producer specialising in frozen vegetables and ready-to-serve foods, aims to raise RM23.1 million via a proposed private placement of up to 154.002 million shares, representing about 20 per cent of its existing issued shares.

Executive Director Keh Chuan Yee said the company has earmarked over 70 per cent of the proceeds to fund future projects, mergers and acquisitions and investment in other complementary businesses or assets.

"We expect the acquisition or investment to be within the food processing business segment, such as those relating to the processing, packaging and producing of variety Ready-To-Serve foods, as these businesses are deemed beneficial and are complementary to the group’s existing businesses,” he said in a statement today.

The proposed private placement would enable the group to raise additional funds without incurring interest costs compared to conventional bank borrowings, he said.

In addition, the exercise provides the group with an expeditious fundraising alternative from the capital market as opposed to other forms of fundraising whilst increasing the size and strength of its shareholders’ funds, he noted.

Keh said the placement shares would be issued based on a discount of not more than 20 per cent to the volume-weighted average market price of HBGL shares for the five market days immediately preceding the price-fixing date. — Bernama