Company to undertake exercise involving up to 336.83 million shares for capital and working expenditures.
KUALA LUMPUR: Serba Dinamik Holdings Berhad (“Serba Dinamik Holdings” or “Company”), a global integrated engineering services provider, has today passed the resolutions for a proposed private placement involving up to 336.83 million shares, including a proposed placement of up to 101.05 million shares to Group Managing Director/Group Chief Executive Officer Dato’ Dr. Ir. Mohd. Abdul Karim bin Abdullah (“Dato’ Karim”) or persons connected to him.
The proposed private placement, including the proposed placement to Dato’ Karim, was first announced to Bursa Malaysia Securities Berhad on 8 December 2020.
The proposed private placement of up to 336.83 million shares represents approximately 10% of the existing total number of the Company’s issued shares as at 30 November 2020, which is the latest practicable date prior to the announcement. The proposed placement of up to 101.05 million shares to Dato’ Karim or to persons connected to him, which is part of the proposed private placement, representing up to 3% of the Company’s total number of issued shares.
Dato’ Karim said, “The successful passing of the resolutions will enable us to manage the liquidity and gearing levels to fund current operations and future growth. It will also result in enhanced cash flows,
liquidity, interest costs savings and improved gearing levels”.
“We will be using part of the funds raised from this exercise as working capital for the projects in Abu Dhabi, which includes the construction of a data centre and related facilities and, the construction of an innovation hub together with related information technology infrastructure.
The funds will also be utilized as capital expenditure for the upgrading of production facilities Teluk Ramunia Yard located in Kota Tinggi, Johor which include, among others, the site clearing, restoration of existing building facilities, purchase and installation of heavy machinery and equipment relation to fabrication services”.
The issue price of the placement shares, with a discount of not more than 10%, will be determined by way of a book-building exercise and will be fixed based on the volume weighted average market price of Serba Dinamik Holdings shares for the five market days immediately preceding the price-fixing date.
Serba Dinamik Holdings is currently trading on the Main Market of Bursa Malaysia Securities Berhad under the stock name SERBADK and stock code 5279.