KUALA LUMPUR: Unisem (M) Bhd
plans to raise up to RM742mil through a private placement of up to 161.3 million new shares to expand its semiconductor capacity for artificial intelligence (AI) applications and repay borrowings.
Trading in Unisem shares was suspended between 9 am and 10 am on Friday pending the announcement.
In a filing with Bursa Malaysia, the semiconductor assembly and test services provider said the placement shares will be offered to local and foreign institutional investors identified through a book-building exercise.
Based on an illustrative issue price of RM4.60 per share, the exercise is expected to raise gross proceeds of RM742mil.
Of the total, Unisem said about RM444.5mil will be used to purchase assembly, test and wafer bumping equipment as well as establish cleanroom facilities, RM269.9mil will go towards repaying borrowings, RM22.9mil will be allocated for working capital, while the remainder of RM4.6mil will cover expenses related to the exercise.
The company said the fundraising follows substantial investments in its new production facility in Gopeng, Perak, and the Phase 3 expansion of its Chengdu operations, which were partly financed through borrowings.
It said the proceeds would support the next phase of expansion, including increasing capacity for AI and high-performance computing applications, enhancing operational efficiency and reducing finance costs.
Unisem said that despite the group's cash and bank balances of approximately RM258.9mil as at March 31, 2026, the proposed private placement remained necessary to strengthen its financial flexibility and support the next phase of its expansion plans.
“The proposed private placement will also enable Unisem to preserve its existing cash reserves for operational requirements and working capital purposes, while ensuring that the group remains well-positioned to pursue future expansion and business opportunities as and when they arise.
“This approach is consistent with the group’s commitment towards maintaining prudent financial management, operational resilience and long-term sustainable growth within the evolving global semiconductor industry,” it said.
Unisem added that the private placement would also improve its public shareholding spread to about 31.84% from 25.02% and enhance the liquidity of its shares.
The proposed exercise will be undertaken under the company's existing general mandate approved by shareholders at its annual general meeting on April 28, 2026, and does not require further shareholder approval.
The board expects the proposed private placement to be completed by the third quarter of the calendar year 2026 assuming all the placement shares are placed out in a single tranche.
