Gabungan AQRS sets placement share price at RM1.35

PETALING JAYA: Construction and property development outfit Gabungan AQRS Bhd has set the price of its placement shares at RM1.35 apiece.

It will be raising RM26.3mil from its private placement of 19.48 million new shares to be used as working capital for its construction jobs.

In a filing with Bursa Malaysia yesterday, Gabungan said that the issue price represented a discount of about 5.6% to the five-day, volume-weighted average market price of Gabungan shares, including July 24.

Shares in Gabungan closed two sen higher to RM1.45 yesterday.

The bulk of the proceeds from the private placement will be utilised for working capital for its ongoing construction projects – PR1MA Kuala Kuantan, the Sungai Besi-Ulu Kelang Highway and Pusat Pentadbiran Sultan Ahmad Shah.

Separately, Gabungan is also issuing another 19.56 million new shares at an issue price of RM1.33 to acquire industrialised building system (IBS) company Monolight IBS Building System Sdn Bhd that is majority owned by Nirvana Asia Ltd founder Tan Sri Kong Hon Kong.

Thus, in total, Gabungan is issuing 39.04 million new shares, which is 10% of its current paid-up capital.

Monolight is the appointed contractor for a PR1MA housing development in Kuala Kuantan, Pahang, with a contract sum of RM424.23mil.

Gabungan has a joint-venture (JV) agreement with Monolight to construct and develop the PR1MA Kuala Kuantan mixed development comprising 2,186 housing units and 36 retail units.

In this JV, Monolight has a 51% stake, while Gabungan owns the remaining 49%.

Hence, following the completion of the proposed acquisition, Monolight will be a wholly owned subsidiary of Gabungan.