An aerial view of Tropicana Danga Cove.
KUALA LUMPUR: Iskandar Waterfront City Bhd
(IWC) is planning to place out new shares to raise as much as RM65.9mil for its property development and construction activities.
The company in its filings said that the proposed issuance of up to 66.97 million shares, which would represent up to 10% of its enlarged issued and paid-up share capital, would be placed to third-party investors to be identified later, and at an issue price that would be determined later.
“Subject to prevailing market conditions and the timing of the identification of the placee, the proposed private placement of shares may be implemented in one or more tranches. As such, there could potentially be several price-fixing dates, depending on the number of tranches and the timing of the implementation,” IWC said in a statement.
Using an illustrative issue price of 98.42 sen per placement share, which was based on IWC’s five-day volume-weighted average market price up to and including May 6, the group could potentially raise gross proceeds of up to RM65.91mil from the proposed exercise.
It said it would use the bulk of the funds raised - RM44.9mil or 68% of the illustrative gross proceeds - as payment to sub-contractors, suppliers and professionals for ongoing projects. For land-related expenses, IWC allocates funds amounting to RM15.2mil or 23% of the illustrative gross proceeds, while general working capital would make up about RM4.3mil or about 6.5%.
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