KUALA LUMPUR: KNM Group Bhd
has proposed to raise up to RM54.9mil by placing out new shares to investors.
Proceeds from the exercise, which will expand its share capaital base by up to 20%, will be utilised to buy raw materials and as payment to contractors (RM33.6mil) and repay bank borrowings (RM20mil).
Under the plan, the oil and gas fabrication company will issue up to 296.9 million new shares at an assumed price of 18.5 sen each, KNM told Bursa Malaysia today.
"The Company envisaged its business and earning visibility to gradually recover from the slowdown caused by the global outbreak of COVID-19, the implementation of Movement Control Order in Malaysia as well as the slump of global crude oil prices, commencing from second half of 2022," it said.
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