Hubline raises another RM4.02 mln from private placement

KUCHING: Hubline Bhd has raised an additional RM4.02 million from the second tranche private placement exercise.

The company placed out 108,603,000 new ordinary shares priced at RM0.037 each under the second tranche, it said in a filing with Bursa Malaysia.

With the latest issuance of new shares, Hubline’s total number of shares has ballooned to about 4.27 billion units and issued capital of some RM237.6 million. 

Hubline group, which is involved in shipping and aviation business, had raised about RM10.98 million from the private placement of 261.4 million new ordinary shares priced at RM0.042 shares under the first tranche about four months ago. 

The company has proposed to place out up to about 390 million new shares representing up to 10 percent of its total number of issued shares.

From the proceeds, Hubline plans to utilise most of them to par down bank borrowings and for working capital requirements.

Last week, Hubline’s subsidiary Layang Layang Aerospace Sdn Bhd secured a contract worth RM29.15 million to provide inspection and calibration services for the Civil Aviation Authority of Malaysia.

The contract is for a duration of 60 months from Jan 1, 2022 to Dec 31, 2026.

Layang Layang had also recently secured a major contract worth RM63.2 million from the Sarawak State Health Department to provide aircraft and helicopters for the flying doctor service, medical evacuation service and other ancillary health services.

The contract took effect from Jan 1, 2021 and ends on Dec 31, 2024.