KUALA LUMPUR: Press Metal Aluminium Holdings Bhd (PMAH) aims to raise RM1 billion via a proposed placement of up to 163.39 million new shares.

       In a filing with Bursa Malaysia today, it said the proposed placement represents 2.0 per cent of the total issued PMAH shares, and the issue price will be determined and announced later.

       "Based on the illustrative issue price of RM6.12 per placement share, the proposed placement is

       expected to raise gross proceeds of approximately RM1.0 billion, to be used for capital expenditure (RM210 million), working capital (RM670 million) and repayment of borrowings (RM120 million).

       "The estimated expenses related to the proposed placement of RM8.0 million will be funded by the company via internally generated funds,” the aluminium production company said.

       Meanwhile, PMAH entered 2022 with higher production volume with its Phase 3 smelter at the

       Samalaju Industrial Park in Bintulu, Sarawak, having achieved full commissioning in the fourth quarter of 2021.

       "This is timely as PMAH will be well-positioned to capture demand arising from the structural change driven by the global decarbonisation drive.

       "With only circa 25 per cent of worldwide smelters running on hydropower, this could lead to a widening scarcity of low carbon aluminium in the future,” said PMAH.

       Moving forward, it said the group will be further enhancing its value-added capabilities while increasing its extrusion product portfolio as it strives to increase its presence in supporting consumer product-related sectors. - Bernama