KUALA LUMPUR: Khee San Bhd (KSB) signs underwriting agreement with M&A Securities Sdn Bhd, Kenanga Investment Bank Bhd and Malacca Securities Sdn Bhd for proposed rights issue to regularise financial condition.
Khee San slipped into Practice Note 17 status in November 2021.
The candy confectionery manufacturer and distributor said the proposed rights issue involves the issuance of up to 960.96 million shares and up to 549.12 million warrants on the basis of four warrants for every seven rights shares subscribed.
"With the rights shares priced at 10 sen each, the exercise is expected to raise between RM65 million on a minimum subscription basis and RM96.1 million under the maximum scenario," it said in a statement.
Its executive chairman Yong Loong Chen said the underwriting agreement for the company's rights issue is testament to the stakeholders' confidence in its recovery and growth potential.
"With seven consecutive quarters of profitable results and clear expansion plans, KSB is well-positioned to accelerate growth domestically and internationally, continuing our legacy, which spans over seven decades as a trusted Malaysian confectionery brand," said Yong.
Khee San aims to raise between RM65 million on a minimum subscription basis and RM96.1 million via the proposed rights issue.
KSB aims to use the funds to increase production capacity through new high-speed manufacturing lines, which will support rising demand and improve operational efficiency.
The company also intends to expand its reach in key international markets, including New Zealand, Mauritius and Taiwan, strengthening its distribution network, while growing its portfolio to include new innovative products, it added.
M&A Securities is principal advisor for the rights issue.