KUALA LUMPUR: D&O Green Technologies Bhd has proposed a placement of up to 3.2 per cent of its issued shares to raise about RM205.2 million for its capital expenditure.

       In a filing to Bursa Malaysia, it said the proposed placement involved the issuance of up to 38.5 million new ordinary shares at a price to be determined and announced later, to third party investors to be identified later.

       "As at the latest practicable date, there are 1.20 billion D&O shares in issue," it said, adding the gross proceeds raised were based on an issue price of RM5.33 per placement share.

       The company said the funds would be used to part-finance the construction of an eight-storey manufacturing plant with overall floor space of about 60,000 square metres, situated between the group’s two existing manufacturing plants in Batu Berendam Free Trade Zone, Melaka.

       "The manufacturing plant is expected to commence production progressively from the first quarter of 2025," it added.

       D&O, which is mainly involved in the manufacturing and merchandising of semiconductors components, said the proposed placement will enlarge its capital base and further strengthen the financial position of the group.

       "It will enable the company to raise additional funds without having to incur interest expense or service principal repayment as opposed to conventional bank borrowings.

       "It is also an expeditious way of raising funds from the capital market as compared to other alternative fund-raising methods," it added. - Bernama