Asia Dekor ( Report from UOB Kay Hian)

Asia Dekor Holdings Ltd, a maker of laminated floor products, said it plans to raise additional capital to reduce its bank debts by issuing 50 mln new shares at 0.1425 sgd each. In a statement, Asia Dekor said it has appointed CIMB-GK Securities Pte Ltd as placement agent. The issue price represents a discount of approximately 3.5 pct to Asia Dekor's weighted average price of 0.1476 sgd on March 24. "The purpose of the placement is to allow the company to raise net proceeds of approximately 6.9 mln sgd by the issue of the placement shares, after deducting estimated expenses pertaining to the placement," the company said. "Net proceeds from the placement will be used for the reduction of a long term bank loan which was drawn down for financing the construction of the group's factory in Heyuan."