Good stock will drop everyday ? Funny. Dont convince yourself when is the time to cut loss please cut. Real good stock the price will stand good like rgtech still stand at 0.330
KUALA LUMPUR (Sept 11): QES Group Bhd has proposed to undertake a private placement of up to 75.83 million shares to raise up to RM20.47 million, which will mainly be used for factory expansion, financing its research and development (R&D) and future working capital.
In a filing with Bursa Malaysia, the group said the placement size represents 10% of its total issued shares of 758.31 million, while the issue price will be determined later.
The placement shares will not be priced at a more than 10% discount to the five-day volume weighted average market price of QES shares immediately before the price fixing date.
The company said for illustration purposes, based on an issue price of 27 sen per share, the placement shares could raise up to RM20.47 million.
Of this amount, RM8.2 million will be allocated for factory expansion to double its current production capacity, RM5.3 million will be used for R&D on future products, such as wafer stockers with automated guided vehicle and Industrial Revolution 4.0-related projects.
While it has also earmarked RM4.9 million for future working capital use or other investment purposes, RM1.5 million will be used for expanding its China operation, which consists of setting up a technical support office in Shanghai, hiring additional three local engineers and one administrative staff as well as budget for participation in exhibitions, branding and marketing activities.
QES said it expects to complete the corporate exercise by the second half of 2020.
The group is principally involved in the distribution of inspection, test and measurement equipment, materials and engineering solutions, and manufacturing of optical inspection equipment, automated handling equipment as well as advanced wafer measurement systems.
At 3.40pm, the counter's share price was unchanged at 27.5 sen, giving it a market capitalisation of RM208.53 million. Some 9.42 million shares were traded.
Hi, Like to ask why company is cash rich but still want to do private placement for expansion? It has RM50m net cash. Also, last few quarters operation cash flow is negative. Can anyone comment or shared some opinion? Thanks.
Private placement has advantages over other equity financing methods, including less burdensome regulatory requirements, reduced cost and time, and the ability to remain a private company.
QES managing director and president Chew Ne Weng said the purchase of the building would enable it to increase its manufacturing capacity.
KUALA LUMPUR: QES Group Bhd is buying a factory building with a five-storey office in Glenmarie, Selangor for RM21mil cash to expand its office and production area.
In a statement on Monday, QES managing director and president Chew Ne Weng said the purchase of the building would enable it to increase its manufacturing capacity.
“The expansion is estimated to double QES’s manufacturing capacity as well as to support future growth and expansion for our manufacturing and distribution division, ” he added.
QES’s core business is the distribution of inspection, test and measurement equipment, materials and engineering solutions. It also manufactures optical inspection equipment, automated handling equipment and advanced wafer measurement system.
Its unit QES (Asia-Pacific) Sdn Bhd had signed a sale and purchase agreement with Astronautic Technology (M) Sdn Bhd for the purchase of the factory in Glenmarie, Selangor, which is near its current office and factory.
The site is 5,833 square metres which comprises a single-storey detached factory with an annexed five storey office.
QES plans to fund the proposed acquisition via its own funds and/or bank borrowings. It expects the proposed acquisition to be completed within three months.
This counter performed quite well during MCO. Too bad overall market sentiment is bad. If not I will consider holding this stock if price is reasonable.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
SapuKaki
147 posts
Posted by SapuKaki > 2020-09-08 14:48 | Report Abuse
wait till 0.275 before average down...long term support...no sign of rebound yet