INARI (0166) INARI AMERTRON BHD to raise RM1.07b via private placement for capex, acquisitions and investments
KUALA LUMPUR (May 6): Inari Amertron Bhd plans to raise up to RM1.07 billion via a private placement to be used for capital expenditure, acquisitions and investments.
In a bourse filing, the outsourced semiconductor assembly and test (OSAT) company proposed to issue up to 333 million new shares — which accounts for 10% of its share capital — to third party investors at an indicative price of RM3.20 a share.
Inari Amertron said it is in continuous discussions with potential new customers within the semiconductor industry to provide OSAT services. And as part of the negotiation process, the group may be required to commit to substantial investments in factory fit-outs, and to acquire and install new manufacturing equipment and additional production space to secure new customers and or long-term supply orders.
As such, Inari Amertron said it is critical that it secures the required funds so that it may expeditiously carry out any capacity expansion plans while putting it in a better position when negotiating with potential customers.
It added that it will be using the raised funds to accelerate plans to acquire and invest in “good value, high quality and complementary semiconductor and OSAT related companies and assets” that can generate sustainable revenue and earnings growth, good profit margins and good returns on invested capital.
“Once the investments have been identified and the relevant agreements have been entered into, immediate announcements will be made. In addition, shareholders’ approval shall be sought at an extraordinary general meeting to be convened, if required,” it said.
The placement is expected to be completed in the second half of 2021, the group said, adding that its share capital will rise to 3.77 billion shares after the placement and the full exercise of the group's employee share option scheme.
Shares in Inari Amertron closed 0.93% or three sen higher at RM3.26, valuing the group at RM10.89 billion.