KUALA LUMPUR (Dec 16): JHM Consolidation Bhd plans to raise RM92 million via a private placement for the construction of its new manufacturing facility at the Batu Kawan Industrial Park in mainland Penang. 

Under the exercise, up to 55.76 million new shares, representing 10% of JHM’s 557.6 million issued shares, will be issued to independent third party investors to be identified later, the semiconductor group said in a bourse filing.

“The issue price of the placement shares may be fixed at a discount of not more than 10% to the volume weighted average price (VWAP) of JHM shares for the five market days immediately preceding the price-fixing date. 

“The illustrative issue price of the placement shares is assumed to be RM1.65 per placement share, which represents a discount of approximately 4.62% to the five-day VWAP of JHM shares up to the LPD (latest practicable date) of RM1.73,” the group said. 

JHM said it intends to construct a new two-storey manufacturing facility, including an office block with 350,000 sq ft build-up area for its new telecommunication equipment manufacturing business segment. 

The facility will also cater to the group’s expansion plans in the automotive lighting industry, it said, adding that the construction works cost is estimated at RM100 million. 

JHM also plans to install new equipment and machinery such as five new surface mounted technology (SMT) lines in the manufacturing facility at a cost of RM50 million to support the new business segment. 

The cost of purchasing and installing new equipment machinery, and part of the manufacturing facility construction cost will be financed through internally-generated funds or bank borrowings.

Shares of JHM Consolidation closed up one sen or 0.68% at RM1.72 on Wednesday (Dec 15), giving the group a market capitalisation of RM959.07 million. 

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