Mi Technovation plans private placement to raise up to RM270.68m for business expansion
KUALA LUMPUR (July 5): Mi Technovation Bhd, which is principally involved in the semiconductor equipment business, has proposed to undertake a private placement of up to 10% of its share capital to raise up to RM270.68 million, to expand the group’s business.
The placement, to be issued to third party investors to be identified at an issue price to be determined, will involve the issuance of up to 82.025 million placement shares, according to MI Technovation's bourse filing today.
The approximate gross proceeds expected to be raised is based on an illustrative issue price of RM3.30 per placement share. Of the total, Mi Technovation expects to use RM187 million to expand the group’s business, RM15 million to repay its bank borrowings, and RM64.18 million for working capital.
As at June 25, the group's total borrowings amounted to RM113.6 million.
Mi Technovation shares rose 21 sen or 5.98% to close at RM3.72 today, valuing the group at RM3.05 billion.