KUALA LUMPUR, Jan 7 (Bernama) -- Instacom Group Bhd's completed its private placement exercise, which resulted in proceeds of RM33.75 million, recently with an encouraging take up rate with strategic investors.
The company had proposed up to 10 per cent of its issued and paid-up capital would be issued under the private placement exercise.
"The placement was done at 25 sen per share, which represented a discount of approximately 9.71 per cent to the five-day weighted average market price of Instacom shares, up to and inclusive of Dec 16, 2015," it said in a statement Thursday.
Instacom said the date was the last traded day of Instacom shares immediately preceding the price-fixing date, of RM0.2769 per share.
"The success of this private placement exercise meant that Instacom had raised proceeds of RM33.75 million, further contributing to its cash balance of RM37.99 million as per the company's latest quarterly report for the financial period ended Sept 30, 2015," it said.
Instacom has a strategic relationship with CRCC Malaysia, a subsidiary of China's construction behemoth China Railway Construction Corporation Ltd, and is their in-house contractor as well as their project delivery partner in Malaysia.
Instacom Joint Chief Executive Officer Datuk Seri Dr Yeoh Seong Mok said he was pleased with the success of the public placement exercise and "more so given that it happened at a time when the stock market is in turbulence."
He said the successful private placement exercise showed that investors, who took up the shares, have confidence in the company's bright prospects, hence the encouraging take up rate.
On Wednesday, the company was the leading performer on Bursa Malaysia with 175 million shares transacted and its share closed at 30 sen, up 1.5 sen from the previous day.
At closing today, the company's share declined one sen to 12.5 sen, with 90.28 million shares traded.
-- BERNAMA
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