Business

Tuesday October 20, 2009

Sanichi private placement for bumis only

By ZAZALI MUSA


Company confident of shareholders’ approval

SENAI: The proposed private placement of 50 million new shares by precision mould fabricator Sanichi Technology Bhd is for approved bumiputra investors only, said group chairman and managing director Datuk Pang Chow Huat.

He said one of the country’s largest fund managers would subscribe to the new shares but declined to reveal its name.

Assuming an indicative price of 10 sen apiece, the private placement is expected to raise RM5mil, with RM2mil to be used to reduce bank borrowings and RM3mil for working capital, according to Pang.

Datuk Pang Chow Huat ... ‘The (new) plant will be commissioned by year-end.’

“No one showed interest when our shares dropped to 6 sen six months ago but when the share price went up to 13 sen (recently), suddenly there is interest in the company,” Pang told StarBiz in an interview, in response to a recent news comment on its decision to do a private placement instead of a rights issue to raise capital.

The proposed private placement of 50 million new shares is equivalent to 44% of the company’s issued and paid-up capital.

As at June 6, 2008, Sanichi had 113.5 million shares while its stock price closed at 12 sen yesterday.

Pang said the company was confident that shareholders would approve the proposal which was expected to be finalised in November.

He noted that the stock has not experienced heavy selling or withdrawal of major shareholders pulling out since the announcment of the proposal, saying that this was a show of confidence in the company.

Sanichi is now busy completing orders from its existing clients, especially European multinational corporations (MNCs), while it has also received enquiries from MNCs in the United States, according to Pang.

Sanichi has invested RM6.52mil in its new manufacturing plant located next to its existing facility in the Senai Phase III Industrial Area. “We are already reaching 70% development stage and the plant will be commissioned by year-end,” Pang said.

He said the facility would accommodate its move into fabricating larger moulds for both the electrical and electronics segment and the automotive sector, adding that despite the economic downturn, the company had not shed jobs.

Sanichi is involved in designing and fabricating of precision moulds and toolings, and exports to China, Europe, Indonesia, Japan, Mexico, Singapore, Thailand, the US and Vietnam.


SANICHI : [Stock Watch] [News]


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