KUALA LUMPUR – PNE PCB is proposing a private placement to raise RM21.1 million (US$5.2 million) to reduce its borrowings and upgrade its existing printed circuit board production.

The firm said it would be issuing up to 71.16 million new shares (20% of its total share capital) to third-party investors at a price of 29.7 sen apiece.

The company will allocate RM10.8 million to pay off borrowings, which will amount to estimated annual interest savings of RM382,000.

Meanwhile, RM5 million will be used to upgrade its PCB production line. Currently, the company has production facilities in Johor Bahru and Dong Guan, China, both of which have production capacities of 30,000 sq. m. and 100,000 sq. m. of PCBs a month, respectively.

The group plans to upgrade existing production lines in Johor Bahru to incorporate automation and improve efficiency and costs. The upgrade is expected to expand production capacity.

Following the move, the company’s share capital is expected to increase to 426.94 million shares, up from 355.78 million shares.

The placement is expected to be completed in the first quarter of 2021.

Ed.: RM 1 = US$0.25

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