Innovative raising $75m

INNOVATIVE International is raising $75.6 million from a new issue following a share placement.

Major shareholder Chang Lien-hing has agreed to place 25 million existing shares at $3.025 per share, representing a four per cent discount to yesterday's closing price of $3.15.

Following the placement, Innovative will issue 25 million new shares at the same price to Mr Chang.

Net proceeds of the subscription will be $74 million, of which $25 million will be used to finance the setting up of a joint venture with TPM Co of Taiwan for the manufacture of powder metallurgy products in Guangdong.

The balance will provide additional working capital for the company.