KUALA LUMPUR (Nov 7): Rubber compound manufacturer GIIB Holdings Bhd has proposed to undertake a private placement of up to 10% of its issued shares to raise up to RM6.56 million, mainly to fund working capital and upkeep its machinery and equipment.

In April, GIIB had also conducted a private placement to raise up to RM6.97 million, also to fund its working capital and to upkeep its machinery and equipment. The placement has yet to be completed.

In a bourse filing on Tuesday, GIIB said the new private placement entails the issuance of up to 81.96 million shares to independent third-party investors to be identified later, at an issue price to be fixed.

The expected proceeds of RM6.56 million is based on an illustrative issue price of eight sen per placement share — which is a discount of 7.83% to the five-day volume-weighted average market price of GIIB shares up to and including Oct 31 of 8.68 sen.

From the proceeds, the group plans to use RM5.43 million for working capital and RM1 million for machinery and equipment upkeep. The balance of RM130,000 will be used to defray expenses related to the private placement.

The proposed private placement is expected to be completed by the first quarter of 2024.

GIIB’s shares settled unchanged at nine sen on Tuesday, with a market capitalisation of RM53.22 million.