JAG TO UNDERTAKE PRIVATE PLACEMENT OF UP TO 30 PCT OF EXISTING ISSUED SHARES

KUALA LUMPUR, June 4  -- JAG Bhd has proposed to undertake a private placement of up to 30 per cent of the total existing number of issued shares in the company to independent third-party investor(s) to be identified later.

In a filing with Bursa Malaysia today, the waste management company said the shares are assumed to be issued at an indicative issue price of 33 sen per share. 

“Based on the proposed placement size of up to 161.04 million shares and assuming it was issued at the indicative issue price, the exercise is expected to raise gross proceeds of up to RM53.14 million,” it said.

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About RM36.45 million of the proceeds is expected to be utilised for working capital, RM11.98 million for repayment of bank borrowings, RM4.41 million for the acquisition of equipment, while about RM300,000 will be used for the estimated expenses for the proposed private placement exercise, it added. 

As at June 3, 2021, JAG has an issued share capital of RM179.07 million comprising 544.11 million shares in JAG, of which 7.33 million shares are treasury shares.

“Based on the above, the proposed private placement will involve the issuance of up to 161.04 million new shares.

“However, the actual number of shares to be issued and also the issue price of each tranche of the placement shares will be determined separately and fixed by the board at a later date after obtaining the relevant approvals,” JAG noted.

The company added that the proposed private placement may be implemented in a single tranche or multiple tranches and there could potentially be several price-fixing dates depending on the number of tranches and timing and for illustrative purposes. 

-- BERNAMA