MRCB to raise up to RM612mil through private placement

MRCB, the developer of Kuala Lumpur Sentral central business district (see pic), will use the lion's share of the proceeds for property development activities.

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) plans to raise gross proceeds of up to RM612.1mil through a proposed private placement of up to 20% of its issued and paid-up capital.

In a filing with Bursa Malaysia, the property and infrastructure developer said it proposed to place up to 493.61 million RM1 shares to major shareholder Gapurna Sdn Bhd and independent third party investor(s) to be identified at a later date.

Gapurna, which is owned by MRCB group managing director Tan Sri Mohamad Salim Fateh Din and his wife Puan Sri Yasmin Mohamed Ashraff, has a 16.7% stake in MRCB, making it the second largest shareholder (the Employees Provident Fund has a 38.37% stake).

Gapurna had vide its letter to the company dated Nov 16 said it would subscribe for 60 million placement shares. It has further indicated its intention to subscribe for a further 60 million subject to, among others, the actual timing of the implementation of the private placement, the actual issue price of the shares as well as its cashflows and/or availability of external financing at the point of implementation.

Unless EPF increases its stake later, its shareholding will be diluted to between 23.1% and 31.9% while Mohamad Salim’s indirect stake may rise up to 19.5% based on the potential 120 million share subscription.   

MRCB said based on the indicative issue price of RM1.24 per placement share, the exercise is expected to raise gross proceeds of up to RM443.072mil under the minimum scenario and RM612.1mil under the maximum scenario. 

The Kuala Lumpur Sentral CBD developer said just over 60% of the proceeds - between RM278.8mil and RM371.5mil - would be used for property development activities.

Just over 20% is allocated for general working capital while about 14% will be used to repay borrowings.

MRCB shares shed 1 sen to close at RM1.42 on Monday with 1.976 million shares changing hands.