KUALA LUMPUR (Oct 10): Shares in Luster Industries Bhd fell 5.26% late this morning after it proposed to undertake a private placement to raise RM16.99 million to defray its property development projects' expenses and for its manufacturing business' working capital.

At 11.03am, Luster fell 0.5 sen to 9 sen with 1 million shares traded.

Luster said the placement entails 197.6 million new shares, representing about 10% of the group's issued shares, at an issue price to be determined later.

The group said it intends to place out the placement shares to a third party investor, who will be identified at a later date.

The group plans to use RM7 million of proceeds raised through the private placement for property development expenditure, while RM9.89 million will be slated for its manufacturing business' working capital.

The remaining RM100,000 will be for expenses of the corporate exercise.

Luster expects to complete the private placement by the first quarter of 2019.