PETALING JAYA: UWC Bhd

is proposing to place out up to 55.19 million new ordinary shares, representing up to 5% of its issued shares, to raise about RM384.13mil for the expansion of its manufacturing facility, working capital and repayment of bank borrowings.

In a filing with Bursa Malaysia, the firm said the placement price would be determined by its board at a later date after all relevant approvals for the proposed placement have been obtained.

The placement price will be based on a discount of not more than 10% to the five-day volume weighted average market price (VWAP) of UWC shares immediately preceding the price-fixing date, in accordance with the listing requirements.

For illustration, UWC said an issue price of RM6.96 had been assumed, representing a discount of about 5.03% to the five-day VWAP of RM7.3290 up to and including Oct 5, the last trading day before the announcement.

UWC said RM200mil of the proceeds would part-finance the expansion of its existing manufacturing facility.