KUALA LUMPUR (Oct 6): CME Group Bhd, which manufactures fire-fighting and safety vehicles, has aborted its plan to raise up to RM10.19 million via a private placement of not more than 20% of its issued shares or 308.76 million new shares in the group.

"After due deliberations and careful consideration of the group’s funding requirements in view of the latest business plans, the board of directors intends to explore other fundraising avenues, which potentially can raise higher quantum of proceeds to meet its business needs, and thereby, [has] decided to abort the proposed private placement," it said in a Bursa Malaysia filing on Thursday (Oct 6).

"The company will announce the details of the new fund-raising exercise in due course," it added.

CME Group had on Aug 16 proposed to undertake the corporate exercise, which entails the issuance of up to 308.76 million new shares to raise up to RM10.19 million in funds based on an illustrative issue price of 3.3 sen per placement share.

The proceeds would be used to repay bank borrowings and for working capital. As at June 30, 2022, the group’s total borrowings stood at RM21.24 million, while its cash and bank balances amounted to RM1.72 million.

The proposed private placement was supposed to be completed by the end of this year.

This follows an earlier private placement that was completed in June 2021, which saw the group raising RM3.7 million.

CME Group shares closed unchanged at 4.5 sen on Thursday, bringing it a market capitalisation of RM44.71 million.