Home / Business / Aemulus proposes placement of shares to raise RM66.7mil

Aemulus proposes placement of shares to raise RM66.7mil

KUALA LUMPUR: Aemulus Holdings Bhd plans to undertake a placement of its shares to raise an estimated RM66.7 million for future investments, acquisitions and potential collaborations.

In a filing with the bourse, the group said the proposed placement entails the issuance of up to 60.69 million new Aemulus shares, representing up to 10 per cent of the total number of Aemulus shares in issue.

It said the issue price of the placement shares will be fixed at a date to be determined and announced later.

Based on the illustrative issue price of RM1.10 per placement share, the exercise is expected to raise gross proceeds of RM66.7 million.

“The proceeds would also be utilised for research and development expenditure, capacity expansion within two years, as well as for additional investment in its joint venture within 12 months from the receipt of the proceeds,” it added.

Aemulus said demand for its products is expected to increase in the near term, driven by strong demand from mobile and tablets, complementary metal-oxide-semiconductor image sensors, data center, radio frequency filters and automotive markets, as well as by wider and broader adoption of the 5G technology in China and rest of the world.

“This placement would enable the company to raise additional funds without having to incur interest expense or service principal repayment as opposed to conventional bank borrowings.

“It is an expeditious way of raising funds from the capital market as compared to other alternative fundraising methods, and will improve the financial flexibility of the group by strengthening its financial position and capital base,” it added. – Bernama

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