Artroniq proposes 20% private placement to raise up to RM36.8m; diversification into electronic bicycles business

KUALA LUMPUR (Feb 7): Artroniq Bhd has proposed a private placement to issue up to 65.66 million new shares, equivalent to 20% of its current share base of 328.3 million shares.

Prices of the placement shares will be priced at not more than 20% discount to Artroniq shares’ five-day volume weighted average market price, the group said in a stock exchange filing on Tuesday (Feb 7). 

Based on an illustrative issue price of 56 sen per placement share, the group may raise up to RM36.77 million, of which 61% are meant for general working capital, 38% for spending in the electronic bicycles assembly and manufacturing business, and the remaining proceeds for expenses of this corporate exercise.

Malacca Securities Sdn Bhd has been appointed as principal adviser and placement agent for the private placement.

Artroniq expects the private placement to be completed within the first quarter of this year.

Meanwhile, the group, which is mainly involved in the distribution of power cable and ICT (information and communications technology) products, has also proposed to diversify into the electronic bicycles business to expand its revenue stream.

Shares of Artroniq closed half sen or 0.7% higher at 68.5 sen on Tuesday, giving it a market capitalisation of RM224.88 million.