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October 21, 2009 20:36 PM

Pelikan To Raise RM188.7 Mln Via Rights Issue For Working Capital

KUALA LUMPUR, Oct 21 (Bernama) -- Pelikan International Corp Bhd plans to undertake a renounceable 1-for-2 rights issue to raise up to RM188.7 million for working capital.

It entails an issue of up to 171.584 million new shares at RM1.10 each.

Pelikan president and chief executive officer, Loo Hooi Keat, said the group has embarked on an aggressive expansion path in Europe and Asia in the past years, which were funded mainly by internally funds and some borrowings.

"In this, we have tasted much success as demonstrated in our revenue rising from around RM500 million in financial year 2005 to RM1.3 billion in financial year 2008," he said in a statement.

Loo said Pelikan would focus on growing the group's business in the global market in future.

"We hope the rights issue will increase our share capital base to commensurate with the increase in the volume of our business, and more significantly, enhance our balance sheet," he said.

If fully subscribed, the issue would result in the company's share capital increasing from RM343 million to RM515 million.

Loo said the group was optimistic the exercise would fuel the growth achieved so far, and at the same time prepare for future expansion.

"Barring unforeseen circumstances, the proposed rights issue is expected to be completed by the first quarter of 2010," he said.

Maybank Investment Bank Bhd is the adviser to the issue.

-- BERNAMA

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