PETALING JAYA: Serba Dinamik Holdings Bhd is proposing a private placement of 394.62 million new shares, representing up to 10% of its total number of issued ordinary shares, at an illustrative price of RM1.47 per share.
Based on the illustrative price, the proposed private placement is expected to raise gross proceeds of approximately RM450.57 million and RM580.09 million under the minimum scenario and maximum scenario respectively.
Serba Dinamik said the proceeds will go towards the partial repayment of bank borrowings, working capital and estimated expenses from the proposed exercise.
“The proposed private placement is intended by the company to strengthen the financial position of the group by reducing part of its existing borrowings. The benefits include enhanced cash flows, liquidity, interest costs savings and improved gearing levels for the group,” it said in its exchange filing.
It also noted that this will help create create financial flexibility for the group to fund its future expansion plans and its growth strategy should the opportunity arise.
The proposed private placement is expected to be completed by Q220.
