CEO Morning Brief
Salutica Plans RM11.9m Private Placement to Fund Capex, Working Capital
edgeinvest
Publish date: Tue, 28 Jan 2025, 10:55 AM
KUALA LUMPUR (Jan 27): Salutica Bhd (KL:SALUTE) plans to raise up to RM11.94 million via a private placement exercise to third-party investors to fund its capital expenditure for new jobs and working capital requirements.
The placement will comprise up to 42.65 million shares or 10% of the company’s share base, according to the electronics manufacturer’s bourse filing on Monday.
The proposed exercise comes weeks after Salutica shares plunged following the court’s decision to dismiss its suit against Apple over an alleged patent infringement.
The counter recorded a single-day drop of 36.9% on Jan 17 to 26.5 sen from 42 sen, the day the court’s decision was announced.
Salutica shares ended 1.5 sen or 5.66% lower at 25 sen on Monday, valuing the company at RM104.65 million.
The RM11.94 million proceeds expected to be raised from the private placement were based on an illustrative price of 28 sen per share, which Salutica said is a 6.88% discount to the five-day volume-weighted average price (VWAP) of its shares up to Jan 17 of 30.07 sen.
Of the proceeds, RM5 million is earmarked for capital expenditure to support new customers and new product ranges. Salutica noted it recently secured a new customer for the manufacturing of data computing devices and is expected to commence a test run and production by June 2025.
Meanwhile, another RM6.66 million is allocated towards the company’s working capital requirements. A RM200,000 sum is left to defray the private placement’s expenses.
The private placement is expected to complete by the second quarter of 2025.
Source: TheEdge - 28 Jan 2025
Related Stocks
| Chart | Stock | Last | Change | Volume |
|---|---|---|---|---|
 | SALUTE | 0.205 | 0.00 (0.00%) | 1,583,100 |
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