PUC Founder mulls private placement for liquidity and diversification in solar plant

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KUALA LUMPUR: PUC Founder (MSC) Berhad (PUC Founder) is proposing to undertake a private placement of up to 84,503,000 new ordinary shares of RM0.10 each (PUC Founder Shares) in PUC Founder (Proposed Private Placement), representing up to 10 per cent of the issued and paid-up share capital of PUC Founder.

The Proposed Private Placement is to raise funds for investment in new businesses and the PUC Founder and its subsidiaries’ (Group) working capital requirements. PUC Founder is also proposing to undertake a Bonus Issue of up to 132,791,321 new PUC Founder Shares (Proposed Bonus Issue) on the basis of one bonus share for every seven existing PUC Founder Shares held.

PUC founder group managing director, Cheong Chia Chieh, said in a press statement: “The Proposed Bonus Issue is to reward our shareholders for their continuing support. This exercise will also improve the trading liquidity of PUC Founder Shares in the stock market via a greater participation by investors with the increase in the number of PUC Founder Shares.”

On top of the Proposed Bonus Issue, simultaneously, the group is proposing to undertake a free warrants issue of up to 132,791,321 warrants on the basis of one warrant for every seven existing PUC Founder Shares held.

This exercise allows existing shareholders to further participate in the future prospects and growth of the Group and any potential capital appreciation in the warrants and the PUC Founder Shares.

“We believe that these proposed corporate exercises are in tandem with the Group’s current scale of operations, which is to further strengthen the 3 Pillar Developments, namely Founder Qube (e-content), Shopinfo (Online to offline ‘O2O’ social media) and Founder Pay (e-payment). We will continue to enhance shareholders’ value by maintaining consistency in the financial performance of the Group,” said Cheong.

“As part of our Group’s efforts to seek investments and business acquisition with good growth potential to provide additional sources of revenue and profits, we are exploring to venture
into setting up of a solar power plant in Malaysia which is expected to yield recurring and steady returns. Our Group would become more resilient with a larger revenue base from diversified business venture,” he added.