UWC Bhd is proposing to raise approximately RM384.13 million through a private placement of up to 55.19 million new ordinary shares, representing up to 5% of its existing issued shares.
The company said the fundraising exercise is aimed at strengthening its financial position and supporting its business expansion plans. The proceeds will be used mainly to expand its existing manufacturing facility, provide additional working capital and repay bank borrowings.
In a filing with Bursa Malaysia, UWC said the final placement price will be determined by its board at a later date, subject to the necessary approvals being obtained.
The placement price will be set at a discount of not more than 10% to the five-day volume weighted average market price (VWAP) of UWC shares immediately before the price-fixing date, in accordance with Bursa Malaysia’s listing requirements.
For illustration, UWC has assumed an issue price of RM6.96 per share. This represents a discount of approximately 5.03% to its five-day VWAP of RM7.3290, based on trading up to Oct 5, which was the last trading day before the announcement.
Of the estimated RM384.13 million in proceeds, RM200 million will be allocated to partially finance the expansion of its existing manufacturing facility. The remaining funds will support the company’s working capital requirements and repayment of bank borrowings.
The proposed placement is expected to provide UWC with additional financial resources to strengthen its manufacturing capacity, support operational needs and meet its future business requirements.
The exercise remains subject to the relevant regulatory and shareholder approvals, with the final issue price and completion details to be announced at a later date.
