Penang-based Aspen (Group) Holdings has raised $23.8 million placing out 100 million new shares.

The subscribers, paying 23.8 cents per share, include Chua Ma Yu and Chua Sai Men, directors of Aspen Glove Sdn Bhd, which is a glove-making joint venture of Aspen’s. 

Another investor is Alan Wang Yu Huei, an existing Aspen shareholder, who is known to be a substantial shareholder in several other companies via his vehicle Asdew Acquisitions.

According to Catalist-quoted Aspen, one reason for this placement is to meet the minimum shareholding spread requirements applicable for its planned upgrade to the Mainboard. 

The proceeds from the placement will be used mainly to fund the construction of Phase 1 of the glove manufacturing facility.

See: Aspen started at ‘buy’ as a Penang transformation play

The facility is expected to be completed by Q1 2021 and the production is slated to start by Q2 2021 to bring between 1.6-1.8 billion gloves annually to the market. 

“We are confident that we will be able to meet the timeline based on the current progress and our ability as a specialised developer and with our past experiences,” says Murly Manokharan, Aspen’s president and group CEO.

“Subsequently, we will aim to complete another 3 phases of Aspen Glove in the next three years and expect to produce between 13.1-14.1 billion gloves annually,” he adds.

Aspen now has a total share base of just over 1.08 billion shares, up from 983.3 million prior to the placement.

Aspen shares closed Nov 18 at 26 cents, up 20.45%.