KUALA LUMPUR (Dec 29): Kanger International Bhd intends to undertake a private placement of up to 129.97 million shares, or 20% of its issued share capital, to yet-to-be-identified third-party investors.

Based on an illustrative issue price of 5.8 sen per share, the placement is anticipated to generate gross proceeds of up to RM10.46 million in the maximum scenario, the bamboo products manufacturer said in a filing with Bursa Malaysia on Friday.

The group said the proceeds would be primarily used for general working capital, the construction of shoplots in its Ijok development, and working capital for its 51%-owned subsidiary, Sung Master Holdings Sdn Bhd.

UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the adviser and placement agent for the corporate exercise, which is expected to be completed by the first quarter of 2024.

Kanger said it had not undertaken any other fundraising exercises in the past 12 months.

Shares in Kanger ended half a sen or 7.41% lower at 6.5 sen on Friday, resulting in the group having a market capitalisation of RM39.22 million.