KUALA LUMPUR (Oct 8): MClean Technologies Bhd (KL:MCLEAN) plans to raise up to RM12.33 million via private placement to acquire a plastic injection moulding business as part of its strategy to diversify its service offerings and revenue stream.

The cash-call exercise involves the issuance of 49.3 million new shares, equivalent to up to 25% of its 197.21 million issued shares. The issue price of the placement shares to be determined later, said the precision cleaning and surface treatment service provider in a bourse filing on Tuesday.

Of the 49.3 million new shares, it planned to place out 25 million to its major shareholder, Accrelist Crowdfunding and the remaining of 24.3 million shares to independent third-party investors.

Accrelist currently owns a 28.53% stake in MClean which will be increased to 32.97% post-private placement exercise.

Based on the illustrative issue price of 25 sen per placement share, it is expected to raise RM12.33 million. Of which, RM6.04 million is intended to fund the acquisition of plastic injection moulding business from We Total Engineering Sdn Bhd — a subsidiary of a Singaporean firm Jubilee Industries Holdings.  

Another RM5.64 million is for working capital requirements for the plastic injection moulding business and the remaining RM650,000 to defray the private placement expenses.

The proposed acquisition is expected to create synergies with MClean group’s existing surface treatment for electrical and electronic (E&E) products and precision cleaning for hard disk drives businesses, said the group in a statement.  

It is expected to enhance Mclean’s revenue streams and diversify service offerings, while gaining access to We Total’s well-established customer base in key industries such as electrical and electronic (E&E), automotive, oil and gas, and medical devices.

“This integration will enable MClean Group to offer a more comprehensive range of services, particularly in high-precision engineering, increasing cross-selling opportunities and operational efficiencies. These synergies are also likely to enhance MClean group’s value creation to customers in the E&E and automotive industries, it added.  

Following the proposed private placement and acquisition, MClean is also proposing to undertake a share capital reduction of RM35 million for the purpose of rationalising the company’s financial position by eliminating its accumulated losses and to appropriately reflect the value of the underlying assets and financial position of the group, it adds.

The proposals are subject to approval from Bursa Securities and its shareholders and the board expects these proposals to be completed in the first half of 2025.

TA Securities has been appointed as the principal adviser for the proposals and placement agent for the private placement.

Shares price of MClean closed up two sen or 7.8% at 27.5 sen, bringing the group a market capitalisation of 54 million.