KUALA LUMPUR (Jan 19): ACME Holdings Bhd is looking to raise up to RM6.99 million via a private placement to expand its manufacturing segment with a new furniture production line.

In a filing with Bursa Malaysia today, ACME proposed a private placement of up to 21.85 million new shares, or 10% of its total issued shares, at an indicative issue price of 32 sen per share.

Of the proceeds raised from the private placement, it targets to use as much as RM6.89 million for the purchase of new storage box and kitchenware moulds, which will increase the range of products that can be manufactured by the group.

RM3.36 million for the purchase of storage box moulds would allow the group to cater for different segments of the same market by producing boxes of different sizes, ACME said.

Meanwhile, RM1.91 million will be allocated to buy kitchenware moulds, which are to be used for the production of colanders, colander covers, trays, food covers, dish drainers, fruit baskets, egg boxes and chopping boards.

New furniture moulds, on the other hand, would cost as much as RM1.63 million to produce differently shaped plastic tables for ACME's new furniture production line.

"The group intends to add a new furniture production line to complement its existing plastic products due to demand from existing customers," it said.

The shares will be placed out to third party investors not including directors, major shareholders, connected persons and nominee corporations to be identified at a later date, ACME said.

The proposed private placement is expected to help the company raise funds without incurring additional financing costs.

Previously named Supportive International Holdings Bhd, ACME has produced plastic and wooden audio speaker systems and is also involved in property development.

Shares in ACME, which were untraded today, were last crossed at 36 sen, giving the group a market capitalisation of RM77.56 million.