KUALA LUMPUR (Aug 6): Scanwolf Corp Bhd said today its rights issue of Irredeemable Convertible Unsecured Loan Stocks (ICULS) with warrants at 10 sen per rights share was oversubscribed by 101.85% and has raised RM10.5 million.

The plastic extrusions manufacturer and property developer said in a statement the ICULS and warrants are expected to be listed and quoted on the Main Market of Bursa Securities on Aug 9.

According to the statement, subscribers are also entitled to one warrant for every two ICULS subscribed.

Scanwolf’s executive director Ng Chee Wai said the capital allows the group to progress its expansion strategies to tap on the business opportunities arising from the prolonged US-China trade war and economic recovery from the speedy rollout of Covid-19 vaccines.

“We have seen rising demand for furniture products due to the shift to the work-from-home environment as well,” he said.

According to the statement, the funds raised will be used to expand Scanwolf's plastic, packaging and flooring business.

“While the resurgence of Covid-19 cases continues to pose downside risks to the reopening of the global economy, the effective vaccine rollout and pent-up solid demand and a diversification away from China will help Scanwolf to be in a better position in financial year ending June 30, 2022 (FY2022) and sustain its double-digit revenue growth,” said Ng.

At 12.16pm, Scanwolf was unchanged at 44 sen, valuing the group at RM45.47 million.