Chin Hin fixes is­sue price for third tranche of place­ment shares

The Star Malaysia - StarBiz - - News -

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.

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