KUALA LUMPUR (July 19) Industrial gas manufacturer BIG Industries Bhd plans to raise up to RM2.02 million by placing out new shares to third party investors to be identified later, mainly to raise additional funds and increase the liquidity of its shares.

In a filing with Bursa Malaysia today, BIG Industries said the private placement entails up to 4.81 million new shares or 10% of its issued share capital at an issue price to be determined later.

As at June 30, BIG Industries has a share capital of RM48.09 million comprising 48.09 million shares.

The company said the issue price of each tranche of the placement shares shall be based on the volume weighted average market price (VWAMP) of BIG Industires shares for the five market days immediately prior to the price-fixing date, with a discount of not more than 10%.

For illustrative purposes, the five-day VWAMP of BIG Industries shares up to and including June 30 was 45.9 sen per share.

"The illustrative issue price of 42 sen per placement share represents a discount of not more than 10% to the five-day VWAMP of BIG Industries shares," the company said.

Subject to the relevant approvals being obtained and barring any unforeseen circumstances, the company expects the proposed private placement to be completed in the first quarter of BIG’s financial year ending June 30, 2018.

BIG shares were untraded today. It last closed on Monday at 42 sen for a market capitalisation of RM20.2 million.