PETALING JAYA: UWC Bhd is proposing to place out up to 55.19 million new ordinary shares, representing up to 5% of its issued shares, to raise about RM384.13mil for the expansion of its manufacturing facility, working capital and repayment of bank borrowings.

In a filing with Bursa Malaysia, the firm said the placement price would be determined by its board at a later date after all relevant approvals for the proposed placement have been obtained.

The placement price will be based on a discount of not more than 10% to the five-day volume weighted average market price (VWAP) of UWC shares immediately preceding the price-fixing date, in accordance with the listing requirements.

For illustration, UWC said an issue price of RM6.96 had been assumed, representing a discount of about 5.03% to the five-day VWAP of RM7.3290 up to and including Oct 5, the last trading day before the announcement.

UWC said RM200mil of the proceeds would part-finance the expansion of its existing manufacturing facility.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.