KUALA LUMPUR: KNM Group Bhd shareholders have rejected the proposed private placement of up to 987.52 million new shares, representing 30% of its share capital, to raise RM167.9mil.

       In a filing with Bursa Malaysia, KNM said that 163 shareholders owning 333.94 million shares, representing 62.18% of the voted shares, had voted against the resolution at its EGM yesterday.

       Conversely, 115 shareholders with 203.13 million shares, or 37.82% of the voted shares, had voted for the proposal.

       KNM had planned to utilise RM120mil from the proceeds of the placement to pay its debt and another RM44.08mil for working capital.

       According to its financial statements for the first quarter (Q1) ended March 31, 2021, KNM’s current and non-current loans and borrowings stood at RM711.12mil and RM615.02mil, respectively.

       Meanwhile, cash and bank balances stood at RM224.44mil.

       The failed placement exercise will mean that the group will have to look at other avenues to raise funds.

       The oil and gas equipment and services privider had posted net losses of RM2mil in the quarter compared to RM20.26mil in Q1 financial year 2020, as revenue declined to RM231.24mil from RM336.56mil previously.

       The group had initially planned to place out 493.76 million placement shares, representing 50% of the total placement shares, to Gan Siew Liat, who is the executive vice-chairman and major shareholder of the company, and/or persons connected with her.

       The balance placement shares were supposed to be placed out to independent investors at a later date.

       KNM closed up 2 sen at 18.5 sen yesterday after trading resumed in the afternoon. This gives the company a market capitalisation of about RM547.86mil.

       The counter saw 48.81 million shares traded.