Raya to complete rights issuance by September

PETALING JAYA: Raya International Bhd, which will be renamed to Straits Inter Logistics Bhd, is looking to complete the issuance of proposed new rights by the end of September. This is the company’s second name change in four years.

The company, which won approval of its shareholders for the name change in the AGM held yesterday, had previously announced plans to raise RM22.07 million through a rights issue exercise.

“Completion of the right issue should be in the coming quarter,” said the company’s independent non-executive director, Ho Fook Meng.

This is a part of a four-leg corporate exercise, which includes a capital reduction, acquisition of a vessel called Sturgeon for RM3.2 million, the issuance of rights with warrants and the acquisition of another 500 tonne vessel known as the Straits 1.

The acquisition of the Sturgeon was completed last week, while RM2.8 million of the proceeds from the rights issue will be used to acquire Straits 1, which will be used for its oil bunkering business; the company’s core business.

Raya, which left the air and water filtration business in the first quarter, managed to turn around last year on the back of higher oil trading activities, with a net profit of RM100,043 for the financial year ended Dec 31, 2016 following a net loss of RM478,917 in FY15. Going forward, Ho said the company is hoping to maintain the results achieved last year.

Last year Water Beaute World Bhd, a company allegedly involved in money games that have come under the scrutiny of local authorities, sold its substantial stake in the company.

“We have nothing to do with the companies involved,” Ho said when asked if any ties remained.

An individual Rithauddin Hussein Jamalatiff Jamaluddin currently holds the largest stake in the company, with a 12.5% interest. He does not hold a seat on the company’s board. – by V.Ragananthini