Damansara Realty to raise RM15.9mil via private placement

Companies that provide short-term consumer loans at high interest rates are on the increase in countries like Indonesia and the Philippines as many people struggle to get advances through traditional channels such as banks.

KUALA LUMPUR: Damansara Realty Bhd (DBhd), a property developer and integrated facilities management group, plans to raise up to RM15.9 million in a private placement to support its business expansion and revival of its bauxite mining activity.

The private placement of up to 10 per cent of DBhd’s share capital involves the issuance of up to 31.8 million new shares, it said in a statement today.

DBhd has appointed M&A Securities Sdn Bhd as the adviser and placement agent for the proposed private placement exercise, which is expected to be completed by June 2019.

The bulk of the capital of over RM12.8 million raised will help finance its Integrated Facilities Management (IFM) segment expansion, including international parking management business in the Philippines.

DBhd currently has a cumulative tender book value amounting to RM653.67 million from various IFM project bids.

The balance of the funds raised, DBhd said, will go towards working capital and environmental impact assessment expenses to recommence its bauxite mining activity under its subsidiary, Damansara Realty Pahang Sdn Bhd (DRP).

This follows the lifting of the moratorium on bauxite by the Ministry of Water, Land and Natural Resources in March this year.

“This private placement will provide us with the additional resources to meaningfully advance our strategic plans to enhance the long-term growth of the company and value for our shareholders.

“With our sustained profitability streak, we believe the timing is right for us to recommence bauxite mining. We’re now in a strong position to realise the potential of our bauxite reserves, which can be a viable income contributor to supplement our core businesses in the coming years,” said group managing director Brian Iskandar Zulkarim.

DRP has 202.34 hectares of bauxite-rich land in Beserah near Kuantan, with estimated reserves of more than five million metric tonnes.

The group is awaiting approval from the authorities to commence its bauxite mining activity.

“We will continue to observe all laws and regulations as we have always done and will submit the required EIA studies and any process as required by law or regulation prior to commencement,” Brian added. - Bernama

Limited time offer:
Just RM5 per month.

Monthly Plan


Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan


Billed as RM148.00/year

1 month

Free Trial

For new subscribers only

Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Damansara Realty


Next In Business News

Wall St set for higher open after Friday's sell-off amid Mideast jitters
Goldman Sachs' profit jumps 28% on investment banking strength
Tesla to lay off more than 10% of staff globally as sales fall
EPMB and BAIC ink 10-year vehicle assembly agreement
SCIB and Awana sign new agreement, securing exclusive contract for PPAM Mualim Project
Ringgit closes lower against greenback
Eduspec appoints Kang Pang Kiang as deputy chairman
HeiTech Padu wins RM190mil MySikap contract from JPJ
RHB invests RM3.8mil in Boost Bank, maintains 40% stake
GCAP inks MoU for Pahang hydropower project

Others Also Read