KUALA LUMPUR: Ekovest Bhd has proposed to raise up to RM202.6mil by placing out as much as 256 million new shares to independent third party investors to be identified at a later date.
Proceeds from the exercise, Ekovest said in a filing with Bursa Malaysia today, will be utilised to reduce its debts and pay for property development projects.
"After due consideration of the various methods of fund raising, the board is of the view that the proposed private placement is the most appropriate avenue to raise funds," it said.
The fund raising scheme was announced after the market closed.
Ekovest was the most actively traded stock on Bursa Malaysia for a second consecutive day on Tuesday with more than 228 million shares traded.
The counter fell 10 sen to close at 87 sen. Despite the sharp one-day drop, shares in Ekovest were up 67% so far this month.
For the proposed share placement exercise, Ekovest has assumed an indicative price of 79 sen a share, which is the volume weighted average market price of the stock in the past five days.
Ekovest's total borrowings amounted to RM6.4bil.
It will set aside RM100mil from the fund raising scheme to reduce its debts.
For the property projects, Ekovest said it has allocated between RM64mil and RM97mil, depending on the final amount to be raised from the private placement exercise.
Ekovest is the developer of EkoTitiwangsa, a high rise residential project located along Jalan Pahang in Kuala Lumpur.
The company is also building the EkoCheras Hotel, located along Jalan Cheras.