PETALING JAYA: HB Global Ltd has proposed to undertake a private placement to raise up to RM23.1mil to finance future projects, potential corporate exercises and investments.

       In a statement, the technology and engineering company said the proposed private placement would entail an issuance of up to 154 million new ordinary shares in HB Global, representing 20% of its existing issued shares.

       The placement shares would be issued based on a discount of not more than 20% to the volume-weighted average market price of HB Global shares for the five market days immediately preceding the price-fixing date.

       Based on the illustrative issue price of 15 sen per placement share, it was expected to raise gross proceeds of RM23.1mil.

       HB Global Ltd executive director Keh Chuan Yee said the group had earmarked more than 70% of the proceeds for the funding for future projects, mergers and acquisitions, 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.

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

       “It provides the group with an expeditious fundraising alternative from the capital market as opposed to other forms of fundraising,” Keh said.