Medical accessories manufacturer LKL International Bhd plans to raise up to RM45.45 million via a private placement to fund its capital expenditure (capex) and expansion.

In a bourse filing, the group announced that it would be placing out up to 85.76 million shares or 20% of its share capital to third party investors to be identified.

The expected proceeds to be raised is based on an indicative issue price of 53 sen per share. The actual issue price of the placement shares will be determined later.

In a breakdown of the proceeds, LKL said RM26.5 million will be used for its capex and expansion — including buying two new factory buildings and expanding its current one — while RM6 million will be used for future investments in projects.

A total of RM5.59 million will be used to repay bank borrowings, while RM6.36 million will be used for working capital, and RM1 million to defray estimated costs of the placement.

At the same time, the group announced that it would implement an employee share option scheme (ESOS) for its employees amounting to no more than 15% of its share capital.

Following the private placement and ESOS, it said its share capital will increase to 591.74 million shares, from 428.80 million shares previously.

The proposals will be put up for shareholders approval at an upcoming extraordinary general meeting.

At 3.18pm, shares in LKL were up by 1.91% or a sen at 53.5 sen, valuing it at some RM229.41 million. It saw some 6.21 million shares done.