Southern Cable to raise funds for expansion

PETALING JAYA: Southern Cable Group Bhd has proposed a private placement of up to 10% of its issued shares to fund its multi-year expansion plans and tap growing demand for cables and wires in domestic and overseas markets.

In a statement, the cable and wire manufacturer said the expansion will increase the group’s annual cable and wire output by 25% to 65,000km per year, from 51,980 as of June 30.

Concurrently, it will triple its aluminium-rod production to over 60,000 tonnes per year, from approximately 20,000 tonnes a year as of June 30.

Southern Cable said the expansion will be carried out in stages and is targeted to be completed by end-2027.

At an indicative issue price of RM2.16 per share, the proposed private placement is expected to raise gross proceeds of between RM218mil and RM259mil under the minimum and maximum scenarios, respectively.