Evergreen Fibreboard fixes placement shares at RM2.05

Evergreen Fibreboard fixes placement shares at RM2.05

by afiq isa

KUALA LUMPUR : Evergreen Fibreboard Bhd (EFB) has fixed the price of its placement shares at RM2.05 for its upcoming private placement exercise involving the issuance of 51.29 mil new shares, which represented approximately 10% of its existing issued and paid-up capital.
 
In a statement today, the particleboard manufacturer said that the private placement was oversubscribed with strong demand by institutional and high net worth investors.
 
The issue price of RM2.05 represents a 4.8% discount to the five-day volume-weighted average price of EFB shares up until Nov 20, when the exercise was announced.
 
The exercise is expected to raise gross proceeds of RM105.14 mil.
 
"We are overwhelmed with the response and will certainly press ahead with our business expansion and re-organisation plans. 2016 is expected to be an exciting year for us," said EFB's chief operating officer Kuo Jen Chiu.
 
CIMB Investment Bank is the principal adviser and placement agent for the corporate exercise. ZJ Advisory Sdn Bhd is the financial adviser for the proposal.