KUALA LUMPUR, Ge-Shen Corp Bhd plans to raise up to RM103.76 million through two private placements, part of which will be used to increase its stake in Local Assembly Sdn Bhd, an electronic manufacturing services (EMS) firm, from 40% to 80%.
In a filing with Bursa Malaysia, the company said the first placement will involve up to 41.4 million new shares — representing no more than 10% of its issued share capital — to third-party investors at a price to be determined later.
Assuming an issue price of RM1.45 per share, the first exercise is expected to raise up to RM60.02 million, which will mainly be used for working capital and loan repayments. As at the latest practicable date (Sept 26), Ge-Shen’s total borrowings stood at RM113.53 million.
The second placement will involve up to 30.16 million new shares, or not more than 6.5% of its issued shares. Based on the same assumed price of RM1.45, this exercise is expected to raise RM43.74 million, of which RM39 million will go towards funding the acquisition of the additional 40% stake in Local Assembly.
The total purchase consideration of RM52 million will be partly satisfied with cash and the issuance of 8.66 million new Ge-Shen shares at RM1.50 each, amounting to RM13 million.
Ge-Shen said the acquisition would strengthen its position in the EMS sector and enable it to tap into Malaysia’s growing manufacturing market. Both the private placements and the acquisition are expected to be completed by the first quarter of 2026.
Shares of Ge-Shen closed one sen lower at RM1.59 on Friday, giving the company a market value of RM642.55 million. Year to date, the counter has risen over 21%.
