SCB proposes 30 pct private placement to improve business growth

KUALA LUMPUR: Sarawak Cable Bhd (SCB) has proposed to undertake a private placement (PP) of up to 30 per cent of the total number of issued shares in the company.

In a filing with Bursa Malaysia yesterday, SCB said the exercise might raise gross proceeds of up to RM41.34 million, intended to be used by SCB and its subsidiaries for working capital based on an indicative issue price of RM0.43 per share.

“This will help to support the day-to-day operations of the company as it focuses on improving its business performance, especially in challenging times considering that the COVID19 pandemic has adversely affected the businesses and economies worldwide,” it said.

Barring any unforeseen circumstances, the company said it expected the PP to be completed within six months from the date of approval by Bursa Malaysia.

On the prospect of SCB, it said the government initiatives and introduction of 5G network would likely benefit the company and provide a positive outlook on the information and communications industry.

“The government’s initiatives to increase the development of artificial intelligence (AI), virtual reality (VR), big data analytics, robotics and IoT in line with the Fourth Industrial Revolution will provide opportunities for power cables to be utilised in newly developed systems,” it said.

Therefore, SCB remained optimistic about its longterm contribution and may capitalise on the opportunity to supply power cables to support the development of AI, VR, big data analytics, robotics and IoT elements.