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Thursday, September 19, 2013

Tiong Nam plans to raise RM42m


PETALING JAYA (Sept 18, 2013): Tiong Nam Logistics Holdings Bhd has proposed to split its shares and issue fresh warrants at 20 sen each to raise RM42 million for working capital and to pay its business expansion.

"The proceeds will be used for the future purchase of land as well as construction of warehouse to support the growth of the group's existing business,'' it said in a filing with Bursa Malaysia today.

The company will allocate RM20 million from the proceeds of the warrant exercise for the purpose of business expansion, while the rest will be set aside for working capital.

Under the fund raising exercise, Tiong Nam said it will first execute the share split exercise by dividing one share into five shares.

Eligible shareholders will be offered to buy warrants to be issued by the company at 20 sen on the basis of one warrant for every two shares held after the share split exercise.

The warrant will carry a strike price of RM1 each.

Shares in Tiong Nam rose 13 sen yesterday to close at RM4.35. After the share split exercise, the stock price will be adjusted to 87 sen each.

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