KUALA LUMPUR: Engineering firm Bintai Kinden Corp Bhd is planning to raise as much as RM58.4mil by selling new shares to fund its expansion into property development.
The proposed private placement of up 114.6 million new shares, at an indicative price of 51 sen each, will expand the group's share capital by 30%.
Proceeds from the exercise will be utilised mainly for property projects in Penang and Melaka.
In September last year, Bintai placed out 28.7 million new shares at 52 sen each, followed by another 31.8 million new shares at 56.5 sen each in November.
Bintai Kinden plans to undertake two mixed property development and management projects with a total gross development value (GDV) of RM558mil.In a statement on Thursday, the company plans to undertake “Holistica Melaka” and “Holistica Penang” with healthcare facilities and wellness services in Melaka and Penang.
The projects are to enable the mechanical and electrical (M&E) engineering company to diversify into property and reduce its reliance on M&E.
Holistica Melaka is an integrated holistic and wellness themed mixed development project comprising condominium-hotel (condotels), residential condominiums, retirement and lifestyle apartments, wellness club as well as a medical specialist centre.
Holistica Penang, with an estimated GDV of RM83.7mil, is a condotel in Penang. It is a 21-storey building comprising 98 condotel units.
Bintai Kinden managing director Ong Choon Lui said the mixed development projects would contribute 25% or more to the company’s future earnings and improve its financial position.
“The additional revenue contribution from the mixed development projects is expected to enhance the company’s profitability and returns on shareholders’ funds, ” he added.
Bintai Group has been involved in the construction of property development and related projects for 36 years.
The property development and management business segment of the Bintai Group will be spearheaded by Ong and chief operating officer Yen Yew Wing @ Yen Yew Ming.
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