Chin Hin fixes issue price for third tranche of placement shares
PETALING JAYA: Chin Hin Group Bhd has fixed the third tranche issue price for its placement shares at RM1.30 per placement share, as part of a fund raising exercise to pare down its debt.
In a filing with Bursa Malaysia yesterday, the building materials manufacturer said the issue price of RM1.30 per placement share represented a discount of approximately RM0.0268 or 2.02% to the five-day weighted average market price of Chin Hin shares from Sept 6, 2017 to Sept 12, 2017 of RM1.3268 per placement share.
Chin Hin said the payment for the placement shares would have to be made by the identified placees within five market days from the price-fixing date, which was Tuesday.
“As the payment condition was not met, no placement shares were issued pursuant to the price fixing announcement dated Sept 5, 2017.”
Chin Hin added that it had re-fixed the third tranche issue price of the placement Shares at RM1.30 per placement share, after taking into consideration the five-day weighted average market price of its shares up to Sept 12.
For the financial year ended Dec 31, 2016, Chin Hin posted revenue and net profit of RM1.06bil and RM44.8mil respectively. The firm’s gross profit margin hovered around 9.3% as at end-2016.
Chin Hin which is currently in a net debt position of RM316.94mil, plans to pare down its debt level going forward. As at end-2016, its current gearing ratio stood at one-time.
According to reports, the company is targeting to pare down its bank borrowings by RM23.6mil through the proceeds from its proposed private placement.
In order to pare down its bank borrowings and expand capacity, Chin Hin plans to raise about RM61.21mil via the private placement, which is about 10% of its share capital.
The corporate exercise is anticipated to be completed by the third quarter of this year.
Chin Hin’s share price closed down 4 sen to RM1.30 yesterday. It reached a record high of RM1.47 in May this year.
The firm, labelled as one of the hidden small cap gems on Bursa Malaysia by RHB Research, has seen its share price rallying since beginning of the year.