PETALING JAYA: BINA PURI HOLDINGS BHD has proposed to undertake a renounceable rights issue with warrants in an effort to raise RM39.54mil to primarily fund its existing property development and construction projects.
The construction and property firm said the proposed rights issuance would see it issuing up to 439.35 million new shares.
The exercise will also see Bina Puri issuing up to 439.35 million free detachable warrants on the basis of one rights share, together with one free warrant, for every one existing share held by company shareholders.
Bina Puri said in a filing with Bursa Malaysa that it would use up to RM27mil to fund its existing property development and construction projects.
The company said the funds would be channelled towards funding four existing projects – Puri Residence in Masai, Johor; Puri Commercial Centre in Kuching, Sarawak; One Jesselton in Kota Kinabalu, Sabah and Petrie Villa in Johor Baru, Johor.
In respect of the group’s construction projects, the utilisation will include payments to contractors, material costs, earthwork, piling works, site clearing, building and external works, as well as payment to the relevant authorities.
The funds will be channelled towards five domestic construction projects – Terengganu state government hotel in Tasik Kenyir; upgrading works for the Pan Borneo Highway in Sarawak; People’s housing programme in Pitas, Sabah; upgrading of federal road FT54 Sungai Buloh-Assam Jawa, Selangor; and the electrified double-tracking project from Gemas to Johor Baru.
Bina Puri also said the proceeds raised would help fund two foreign construction projects – the Malaysian embassy in Moscow and the I am Fine Condominium in Bangkok.
The company said the allocation of funding for the property development and construction projects would be determined over the progress of the projects, based on their status and the estimated cost required then.
“In the event of, among others, any termination or delays in the projects, the surplus would be adjusted and re-allocated to other existing property development and construction projects, and/or future projects of the group, depending on their respective funding requirements.”