Rights Issue to Raise Up to RM53.45 Million; Capital Reduction to Enhance Financial Flexibility
KUCHING, 26 JUNE 2025 – Industrialised building systems specialist, Sarawak Consolidated Industries Berhad (“SCIB” or the “Company”), has unveiled a two-pronged corporate exercise comprising a renounceable rights issue with free detachable warrants (“Rights Issue”) and a proposed share capital reduction. These initiatives aim to bolster the Company’s financial position, optimise its capital structure, and support future expansion initiatives.
Under the proposed Rights Issue, SCIB will issue up to 763.62 million new ordinary shares together with up to 763.62 million free detachable warrants, on the basis of one (1) rights share for every one (1) existing SCIB share held, and one (1) free warrant for every one (1) rights share subscribed. The indicative issue price of the rights shares is RM0.07 each. Demonstrating his continued confidence in the Company’s prospects, Executive Chairman and major shareholder Datuk Chong Loong Men has undertaken to subscribe to 143.00 million rights shares.
The Rights Issue is expected to raise gross proceeds of up to RM53.45 million. The funds will primarily be allocated towards the construction of a new factory, acquisition of factory machinery, partial repayment of bank borrowings, working capital requirements, and expenses related to the proposed corporate exercises. The fresh capital injection will reinforce SCIB’s liquidity and operational capacity, particularly in its core Manufacturing and Engineering, Procurement, Construction and Commissioning (“EPCC”) segments, as it scales participation in major infrastructure projects across East Malaysia and beyond.
Concurrently, the Company has proposed reduction of the issued share capital of SCIB by RM110.00 million pursuant to Section 117 of the Companies Act, 2016. The Proposed Share Capital Reduction will allow the Company and the Group to rationalise their financial position by reducing their accumulated losses via cancellation part of its issued share capital which is lost or unrepresented by available assets, to reflect more accurately the value of the underlying assets and financial position of the Company and the Group.
Commenting on the proposals, Datuk Chong Loong Men, Executive Chairman of SCIB, commented, “The Rights Issue with Warrants provides an opportunity for our shareholders to participate directly in SCIB’s growth trajectory, while simultaneously reinforcing our capital base. Meanwhile, the proposed Capital Reduction reflects our commitment to enhancing transparency and restoring balance sheet strength.”
He added, “We are laying a solid foundation for long-term growth and operational scalability, especially as we align ourselves with the robust infrastructure agenda in Sarawak and the wider region. These corporate initiatives will allow us to be more agile financially and create sustainable value for all stakeholders.”
A circular detailing the proposals will be issued to shareholders in due course for deliberation at an upcoming Extraordinary General Meeting (“EGM”).