KUALA LUMPUR: Pelikan International Corporation Bhd plans to raise RM188.74 million from a proposed renounceable rights issue. This will be on the basis of one rights share for every two existing ordinary shares held.
The company said on Wednesday, Oct 21 said the rights issue involved up to 171.58 million new shares of RM1 each at an issue price of RM1.10 each.
If fully subscribed, the proposed rights issue would increase the company's share capital from RM343 million to RM515 million.
Pelikan president and chief executive officer Loo Hooi Keat, said the group had embarked on an aggressive expansion throughout Europe and Asia in the past years, which were funded mainly by internally-generated funds and some borrowings.
"In this, we have tasted much success, demonstrated in our revenue rising from around RM500 million in FY2005 to RM1.3 billion in FY2008," he said.
Loo said Pelikan's focus in the future was to grow the group's business in the global market.
"In view of this, we hope for the rights issue to increase our share capital base to be commensurate with our increased volume of business, and more significantly, enhance our balance sheet with greater financial flexibility in our continued business expansion," he said.
On the group's prospects, Loo said: "We're optimistic this exercise will fuel the growth developed so far, and at the same time prepare us for our expansion plans in the near future."
The proposed rights issue is expected to be completed by the first quarter of 2010. Maybank Investment Bank Bhd is the adviser to Pelikan's proposed rights issue.
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