SHAH ALAM: Envair Holdings Bhd has received a letter of intent from Zai Corporate Finance Ltd (ZAICF), an investment banking firm based in London, to subscribe for up to 30% of its new ordinary shares of 10 sen each at the market issue price.
The ACE Market listed company said on Friday, Oct 28 the board would deliberate on this matter and announce its decision on the private placement.
Envair executive director Mohd Anuar Mohd Hanadzlah, the pricing would be based on the average market price of the group's shares traded on Bursa Malaysia over a certain period.
'They have indicated in the letter of intent that the valuation will be based on the current market price. Probably what we'll do is that we'll take the average market price over one or two weeks.
'However, the share price has rallied in recent weeks and reached 44 sen, so maybe there are not many who would be keen to buy the shares at 44 sen,' he said, indicating there would be certain amount of discount to be given for the private placement.
The water treatment system equipment manufacturer and distributor group's share price has risen after it announced that it has entered into a joint marketing agreement with Resscom Petroleum Sdn Bhd to undertake the business of distribution and trading of crude oil and liquefied natural gas.
Since Oct 6, share price had surged 232% from 11 sen per share to Friday's closing price of 37.5 sen.'' Year-to-date, its share price has risen by'' 461.5%, from 6.5 sen on Jan 3 and reached its closing high of 40 sen on Oct 20. It hit an intraday high of 43.5 sen on Oct 20.
Interest in the stock was also spurred on by its statement on Oct 13,announced it was venturing into the oil and gas sector.
In the second quarter ended June 30, 2011 the group recorded RM170,000 in revenue and losses of RM290,000.
Sudden interest in the stock has been buoyed by market talk that Envair had received letter of intent from potential buyer based in China to buy between 1.5 million and 2.0 million barrels of oil per month from the group.
In fact, the share rally was due to the entry of some individual investors based in China.
Envair's major shareholders include Teh Chee Teong (15.83%) and Kao Hsuan-Ying (12.16%) while the others are Ng King Kau (9.11%), Zhang Li (4.97%), Lim Ah Seng (4.59%) and Wong Peng Yew (4.45%).
The ACE Market listed company said on Friday, Oct 28 the board would deliberate on this matter and announce its decision on the private placement.
Envair executive director Mohd Anuar Mohd Hanadzlah, the pricing would be based on the average market price of the group's shares traded on Bursa Malaysia over a certain period.
'They have indicated in the letter of intent that the valuation will be based on the current market price. Probably what we'll do is that we'll take the average market price over one or two weeks.
'However, the share price has rallied in recent weeks and reached 44 sen, so maybe there are not many who would be keen to buy the shares at 44 sen,' he said, indicating there would be certain amount of discount to be given for the private placement.
The water treatment system equipment manufacturer and distributor group's share price has risen after it announced that it has entered into a joint marketing agreement with Resscom Petroleum Sdn Bhd to undertake the business of distribution and trading of crude oil and liquefied natural gas.
Since Oct 6, share price had surged 232% from 11 sen per share to Friday's closing price of 37.5 sen.'' Year-to-date, its share price has risen by'' 461.5%, from 6.5 sen on Jan 3 and reached its closing high of 40 sen on Oct 20. It hit an intraday high of 43.5 sen on Oct 20.
Interest in the stock was also spurred on by its statement on Oct 13,announced it was venturing into the oil and gas sector.
In the second quarter ended June 30, 2011 the group recorded RM170,000 in revenue and losses of RM290,000.
Sudden interest in the stock has been buoyed by market talk that Envair had received letter of intent from potential buyer based in China to buy between 1.5 million and 2.0 million barrels of oil per month from the group.
In fact, the share rally was due to the entry of some individual investors based in China.
Envair's major shareholders include Teh Chee Teong (15.83%) and Kao Hsuan-Ying (12.16%) while the others are Ng King Kau (9.11%), Zhang Li (4.97%), Lim Ah Seng (4.59%) and Wong Peng Yew (4.45%).
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