KUALA LUMPUR, Oct 11 — Tiles manufacturer and information technology (IT) company YB Ventures Bhd has proposed to undertake a private placement of up to 20 per cent of its total number of issued shares to raise between RM21.1 million and RM145.9 million.
In a filing with Bursa Malaysia today, the company said the proposed private placement would be to install a rooftop solar photovoltaic (PV) system at its factory building and warehouse in Kulai, Johor Baru, future viable investments, and working capital.
The private placement is expected to be placed to third-party investors at an issue price that would be fixed at a later date, it added.
According to the group, the placement shares would be issued at a price of not more than 10 per cent discount to the five-day volume-weighted average market price (VWAP) of YB Ventures shares immediately preceding the price-fixing date.
For illustrative purposes, it said the indicative issue price of the placement shares is assumed at 43.7 sen, representing a discount of approximately 9.93 per cent to the five-day VWAP of the group’s shares up to and including the latest practicable date (as at Sept 20, 2021) of 48.52 sen per share.
In a separate statement, executive director Datuk Au Yee Boon said the proposed private placement exercise would enable the group to raise additional funds without incurring interest costs as compared to conventional bank borrowings.
In addition, he said it would provide the group with an expeditious fundraising alternative from the capital market as opposed to other forms of fundraising, and increasing the size and strength of the company’s shareholders’ funds.
“We remain optimistic of the group’s future prospects as Malaysia has resumed interstate and overseas travel starting today.
“Towards the fourth quarter of 2021, we have seen pent-up demand for properties, an effective vaccine rollout programme, and low-interest rates, all these are set to bolster businesses that took a hit since last year,” he said, adding that he was optimistic that the property, construction and building material sectors are poised for a rebound, in tandem with the positive economic growth slated for 2022. — Bernama
