PETALING JAYA: Bina Puri Holdings Bhd is exploring various fundraising exercises, including undertaking a proposed private placement to meet its interim funding for the company’s existing projects.
The construction and property firm said this included its construction and property development projects, repayment of bank borrowings and working capital requirements.
Bina Puri said in its filing with Bursa Malaysia that although its construction and property development activities recommenced in May, its operations were disrupted, resulting in a cost overrun as the company incurred additional costs such as demobilisation and remobilisation of machinery as a result of the movement control order (MCO) and payment of salaries despite suspension of activities.
The group had announced on July 10 that it planned to undertake a proposed private placement of not more than 10% of its enlarged share capital, or an issuance of up to 124.4 million shares.
Based on an indicative issue price of 7.3 sen per placement share, the total estimated proceeds in a maximum scenario is RM9.08mil.
The group intends to utilise up to RM7.8mil of the proceeds to fund its existing property development and construction projects.
The board expects the proposed private placement to be completed within six months from the date of approval from Bursa Malaysia.
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