Kuala Lumpur: KNM group Bhd raises their shares up to 167.9 million ringgits, used to repay bank loans accounting for 30% of the share’s capital. It was stated that 50% of the placement shares will be placed out to the major shareholder, Gan Siew Liat who is also the executive vice-chairman.

It was further explained that the issue price to independent investors would be 16 sen and to Gen, it would be 18 sen apiece. It would then give gross proceeds of RM167.9 million. Out of which, RM44.08 million will be used for capital purposes. And RM120 million will be used for the repayment of bank borrowings.

KNM added that with an annual interest rate of 4.55 RM, the total gross profit that can be saved each year can reach 5.4 million RM. The group’s bank loans totalled 1.36 billion ringgit. Bank loans include bank overdrafts, bank acceptance drafts and liabilities. , Revolving loans, instalment purchases and term loans.

From the number of capital purchases, 60% of total capital purposes will be used to purchase the raw materials and consumables for letting the work proceed smoothly. 30% from the capital

purpose will be used to pay the subcontractors. And the other suppliers who were working with the KNM to avoid any distraction in between the work due to wages.

The remaining 10% from the total capital purchase will be used for the payment of the shipping of raw material for logical expenses. As well as the payment for the delivery of the process equipment. KNM in addition elaborated that their percentage fee closed at 17 sen giving a capitalization of RM559. Ninty-one million to the marketplace and it’s far anticipated. That the organization will whole the modern non-public placement via way of means of the fourth area of this 12 months in 2021.

The KNM group also announced that the private placement exercise. Shares of up to 296.92 million were placed on January 15 this year and are assumed to rise to RM52 million. And will be used to pay the subcontractors and suppliers, and paying the procurement of raw materials.