KUALA LUMPUR (April 14): Barakah Offshore Petroleum Bhd has proposed to undertake a private placement of up to 167.16 million new shares, equivalent to 20% of its existing issued shares, to raise RM14.29 million.

The shares will be placed to independent third-party investors to be identified soon at an issue price to be determined later, the group said in a bourse filing.

“Based on an illustrative issue price of 8.55 sen per placement share, the issue price of the placement shares would represent a discount of 10% to the five-day volume-weighted average market price of the shares up to and including the latest practicable date of 9.5 sen,” it said.

Based on the illustrative issue price, the private placement is expected to raise RM14.29 million. Of this, RM13.63 will be used for working capital, including RM9.54 million for payment of salaries to staff and RM4.09 million for operating and administrative expenses.

The group said the private placement, which is expected to be completed by the second quarter of 2021, will contribute positively to its future earnings,

Barakah shares closed 0.5 sen or 4.76% higher at 11 sen today, valuing the group at RM91.94 million.