PETALING JAYA: Construction outfit Benalec Holdings Bhd plans to undertake a private placement exercise to raise funds primarily for its ongoing and future land reclamation projects.
In a filing with Bursa Malaysia yesterday, the company proposed to place out up to 112,221,000 new ordinary shares, representing up to 10% of its total number of issued shares. The issue price will be fixed upon receiving the approval of Bursa Malaysia.
Benalec expects to raise gross proceeds of approximately RM22.4mil and RM31.4mil through the private placement exercise.
“Up to RM21.1mil of the gross proceeds to be raised shall be used to fund the ongoing and future land reclamation projects of the company and its subsidiaries.
“The group has more than 300 acres of land in Melaka secured via land reclamation contracts which it has yet to reclaim. The group expects to complete the reclamation works within the next few years,” said the company in the filing.