PETALING JAYA: QES Group Bhd aims to raise RM20.47 million from a proposed private placement of up to 10% of its issued share capital.
According to its Bursa filing, the exercise will see the issuance of up to 75.83 million shares at an indicative price of 27 sen per share representing a 6.9% discount to its 5-day volume weighted average market price.
The group stated that RM8.2 million of the proceeds has been allocated to expand its factory, RM5.3 million has been allocated to research & development of future products and RM1.5 million will be used for its market expansion into China.
Meanwhile, RM4.97 million will be put towards its working capital and/or other investment and the remaining RM500,000 will be used to defray the cost of the private placement.
The exercise is subject to the approval by Bursa Securities and is estimated to be completed within the second half of 2020.