PA Resources to raise RM15.5 million via private placement

PETALING JAYA: PA Resources Bhd proposes to undertake a private placement to raise up to RM15.5 million to fund capital expenditure.
This comes after the completion of its rights issue with warrants in December 2017.
PA Resources told the stock exchange that the placement shares represent up to 10% of its total number of issued shares.
Based on an indicative issue price of 6.3 sen per placement shares, the proposed private placement is expected to raise gross proceeds of up to RM15.5 million, which are earmarked for a new electrical substation, a new anodising line and additional three units of extrusion press.
“The new anodising line is expected to increase the existing anodising line’s capacity by 1,500 tonnes to 2,100 tonnes. The increased capacity of 2,100 tonnes will provide the company with sufficient capacity to cater for the eventual supply of 2,000 tonnes of aluminium solar panel frames to First Solar Malaysia Sdn Bhd and additional capacity for its ordinary course of business. The total cost of the new anodising line is estimated at RM5.90 million.”
PA Resources in involved in the production of aluminum billets, extrusion profiles and downstream aluminum product-related services. Its shares were unchanged at 8 sen yesterday on some 14.93 million shares traded.