KUALA LUMPUR (Nov 17): Unisem (M) Bhd has proposed a private placement of 72.71 million shares to raise up to RM399.9 million, to fund its expansion plans in China and Malaysia.

In a filing with Bursa Malaysia, the group said it plans to undertake a private placement of up to 10% of the total number of issued shares in Unisem to a third-party investor.

The issue price of each tranche of the placement shares will be fixed at a date to be determined later by the company.

The private placement comes as its share price is hovering at record levels. It closed up three sen at RM5.51 today, valuing the group at RM4.01 billion. On Nov 5, the share price peaked at an all time high of RM6.09. 

Based on the illustrative issue price of RM5.50 per placement share, the proposed private placement is expected to raise gross proceeds of up to about RM399.9 million.

Of this amount, RM124.19 million will be used to fund its expansion plan in Ipoh; RM204.01 million will be used to fund its expansion plan in Chengdu. Meanwhile, RM67.29 million will be allocated for working capital.

The group has plans to improve the production capacity of its semiconductor assembly and test facility and the wafer bumping facility in Ipoh, which involve the purchase and installation of assembly and test and wafer bumping equipment.

It also expects to expand its operations in Chengdu by constructing a new production facility on an adjacent property with an aggregate gross floor area of around 476,000 sq ft (Phase 3 building) by 2022. Upon completion and commission of the Phase 3 building, the group expects the total production floor space to increase from 520,000 sq ft to 996,000 sq ft.