KUALA LUMPUR: Kerjaya Prospek Group Bhd has successfully completed the bookbuilding exercise for its second tranche of placement shares at an issue price of RM1.82.
In a statement, the construction firm announced that the accelerated bookbuilding exercise received an oversubscription rate of 135%.
According to the company, the private placement comprising up to 60 million new ordinary shares of 50 sen each received overwhelming demand.
It was particularly strong among institutional investors which account for an overwhelming 83.5% of the final allocation, it noted. The remaining portion will be allocated to retail investors.
“The oversubscription rate signifies the confidence that investors have in Kerjaya Prospek. I am excited that this exercise has been completed and am looking forward to bring this company to the next level. We will work hard to deliver results and create value for shareholders,” said executive chairman Datuk Tee Eng Ho.
Kerjaya Prospek, formerly known as Fututech Bhd had previously placed out 55 million shares at a price of RM1.65 for its first tranche.
According to the company, the placement share price of RM1.82 for the second tranche represents a 5.3% discount to the five-day volume weighted average market price up to and including May 19, 2016, of approximately RM1.92 per share.
The company’s shares closed unchanged at RM1.92 last Friday, giving it a market capitalisation of RM510mil.
Aside from being a construction operator, Kerjaya Prospek had recently expanded into property development with two new projects in the pipeline in Genting Permai and Meonterez, Shah Alam with a total gross development value of RM500mil.