D&O (7204): D&O GREEN TECHNOLOGIES BHD to raise RM205mil thru private placement for capex

D&O (7204): D&O GREEN TECHNOLOGIES BHD to raise RM205mil thru private placement for capex

D&O Green Technologies Bhd targets to raise an estimated RM205.2 million through a private placement for its capital expenditure.

KUALA LUMPUR: D&O Green Technologies Bhd targets to raise an estimated RM205.2 million through a private placement for its capital expenditure.

In its filing with Bursa Malaysia today, the company said the placement would involve the issuance of 38.5 million new shares, representing 3.2 per cent of the company's shares.

The issue price of the placement shares will be fixed at a date to be determined later.

"The placement is the most appropriate avenue to raise funds for the company and its subsidiaries as it will enable D&O to raise additional funds without having to incur interest expense or principal service repayment as opposed to conventional bank borrowings.

"It is also an expeditious way of raising funds from the capital market as compared to other alternative fund-raising methods, and it enlarges the capital base of D&O and further strengthens the financial position of the company", it said.

Based on the illustrative issue price of RM5.33 per placement share, the exercise is expected to raise gross proceeds of RM205.2 million.

D&O said RM202.99 million of the total proceeds would be used for capital expenditure.

"The proposed placement is expected to be completed by the fourth quarter of 2021," it added.

Ends

https://www.nst.com.my/business/2021/11/744904/do-green-technologies-raise-rm205mil-thru-private-placement-capex