AT Systematization plans second placement to raise up to RM99m more for its glove venture
KUALA LUMPUR (Nov 17): AT Systematization Bhd, which has been topping the most actively-traded list recently, has proposed another private placement to fund its glove business — this time to raise up to RM99.31 million — right after completing one last week.
The new placement proposal comes after its previous placement was completed on Nov 10, with 679.97 million shares placed out and RM43.27 million raised for its glove venture.
It had initially planned to raise up to RM63.83 million under the previous exercise that was announced in August, by placing out up to 795.92 million shares or 30% of its total share capital.
Under this new placement, the group plans to issue up to 750.04 million shares, equivalent to 20% of its total issued shares, to third party investors to be identified, its stock exchange filing today showed.
The estimated RM99.31 million to be raised is based on an indicative issue price of 13.24 sen, though the actual price is yet to be fixed.
Of the sum, it expects to use RM71.16 million for its glove business and RM25.09 million for working capital, with the balance to be used to defray expenses related to the exercise, which it expects to be completed by the first quarter of next year.
The group is currently building a glove manufacturing factory in Perak, from which it expects a production capacity of up to 2.6 billion pieces of medical-grade nitrile gloves per annum by June 2021.
The group previously said it would be investing RM120 million into dipping lines for the factory, and that the new venture is expected to break even in just a year, based on "overwhelming response and queries on orders from foreign and local buyers".
AT Systematization shares, which was trading at 10 sen apiece in early August, touched a high of 27 sen on Nov 11. On market close today, the stock settled at 24.5 sen, after some 1.22 billion shares were traded.
http://www.theedgemarkets.com/article/systematization-plans-second-placement-raise-funds-glove-venture
