Meta Bright to raise RM43.8 mil via placement of 20% new shares

KUALA LUMPUR (Dec 2): Meta Bright Group Bhd, formerly known as Eastland Equity Bhd, has proposed to issue 389.47 million new shares, or 20% of its share capital, to a group of investors including its biggest shareholder and executive director Datuk Lee Wai Mun.

The corporate exercise aims to raise some RM43.8 million by pricing the new shares at 11.25 sen apiece, which is a discount of 9.9% to the stock's five-day volume weighted average price up to Nov 30 of 12.49 sen.

Lee, who owns a 51.1% stake of Meta Bright, will take up 194.8 million or 50.02% of the placement shares via his investment vehicle Leading Ventures Sdn Bhd, while his business partner Datuk Wang Ruihui will subscribe to 81.78 million shares or 21% of the new issuance.

Kuah Ooi Sian, who is in the logistics business, will be subscribing to 15.52% of the new shares, while the remainder will be subscribed by Datuk Foo Chek Pang (5.71%), Lai Cheng Kuan (2.74%), LY Ekuiti Sdn Bhd (2.28%) and 1.37% each by Yeow Jie Xiang and Ang Sok Kiang.

Meta Bright said LY Ekuiti is solely owned by Nurul Salasiah Ismail, who has 17 years of experience in the legal field.

Of the proceeds raised, 42.5% will be used to develop the group's solar photovoltaic business, 22.8% each for refurbishment of a four-star hotel in Kota Bharu, Kelantan and for other business opportunities, 11% for general working capital and the remaining RM400,000 for expenses of the placement exercise.

Meta Bright said the latest fundraising comes after its completion of a RM80.1 million rights issue, the bulk of which was utilised for repayment of borrowings from banks, executive director Lee Chee Kiang and one Datuk Melvinyeo Kiandee.

Malacca Securities has been appointed as the principal adviser for the proposed share issuance, which is expected to be completed by the first quarter of next year.

Shares of Meta Bright, which have almost doubled year-to-date, closed unchanged at 14 sen on Friday (Dec 2), giving the group a market capitalisation of RM272.63 million.