KUALA LUMPUR: Damansara Holdings Bhd (DBHD) has proposed to undertake a private placement of its shares to raise an estimated RM14.76 million for working capital purposes.
In a filing with Bursa Malaysia, DBHD, formerly known as Damansara Realty Bhd, said the proposed private placement entails the issuance of up to 31.84 million new ordinary shares, representing up to 10 per cent of the total number of DBHD shares in issue.
The private placement shares are to be placed to independent third party investors at an issue price, both of which will be determined later.
Based on the illustrative issue price of RM0.473 per placement share, the exercise is expected to raise RM14.76 million in gross proceeds.
"The proceeds are expected to be utilised for mobilisation costs for new projects, administrative and overhead expenses, and repayment to trade creditors and suppliers,” the company said.
Based on the unaudited three-month financial period ended Sept 30, 2021, the DBHD group’s existing business incurred an operating loss of RM3.62 million while cash and bank balances stood at RM24.22 million.
The operating loss was due to increasing cost of operations and competitiveness to secure new projects.
"The Group’s existing cash is mainly tied to ongoing projects and thus are not available to be utilised for operating expenses.
"The proposed private placement will provide the requisite funds to undertake new projects and meeting the Group’s operating obligations,” it said.
It said the proposed private placement is expected to have a positive impact on the future earnings of the group by providing it with the necessary funding to maintain and grow its existing businesses.
The proposed private placement, expected to be completed by the third quarter of 2022, will enable the group to tap into the equity market to raise funds without incurring additional interest cost associated with bank borrowings, thereby, minimising any potential cash outflow in respect of interest servicing costs and preserving the group’s cash flow and directly enhancing shareholders’ value.
As at Jan 28, 2022, being the latest practicable date prior to the announcement, the issued share capital of the company is RM159.35 million comprising 318.38 million shares.
DBHD's main business is properties and land development and integrated facilities management. It was reported last year that state-owned investment company Johor Corporation is in the midst of privatising DBHD.
Separately, DBHD also told Bursa Malaysia the contract tenure of its group chief operating officer Azhari Abdul Hamid will be ending today and he will be appointed as the managing director of HC Duraclean Sdn Bhd, a subsidiary of DBHD.
Azhari holds 291,854 ordinary shares representing 14.59 per cent stake in HC Duraclean. - Bernama
In a filing with Bursa Malaysia, DBHD, formerly known as Damansara Realty Bhd, said the proposed private placement entails the issuance of up to 31.84 million new ordinary shares, representing up to 10 per cent of the total number of DBHD shares in issue.
The private placement shares are to be placed to independent third party investors at an issue price, both of which will be determined later.
Based on the illustrative issue price of RM0.473 per placement share, the exercise is expected to raise RM14.76 million in gross proceeds.
"The proceeds are expected to be utilised for mobilisation costs for new projects, administrative and overhead expenses, and repayment to trade creditors and suppliers,” the company said.
Based on the unaudited three-month financial period ended Sept 30, 2021, the DBHD group’s existing business incurred an operating loss of RM3.62 million while cash and bank balances stood at RM24.22 million.
The operating loss was due to increasing cost of operations and competitiveness to secure new projects.
"The Group’s existing cash is mainly tied to ongoing projects and thus are not available to be utilised for operating expenses.
"The proposed private placement will provide the requisite funds to undertake new projects and meeting the Group’s operating obligations,” it said.
It said the proposed private placement is expected to have a positive impact on the future earnings of the group by providing it with the necessary funding to maintain and grow its existing businesses.
The proposed private placement, expected to be completed by the third quarter of 2022, will enable the group to tap into the equity market to raise funds without incurring additional interest cost associated with bank borrowings, thereby, minimising any potential cash outflow in respect of interest servicing costs and preserving the group’s cash flow and directly enhancing shareholders’ value.
As at Jan 28, 2022, being the latest practicable date prior to the announcement, the issued share capital of the company is RM159.35 million comprising 318.38 million shares.
DBHD's main business is properties and land development and integrated facilities management. It was reported last year that state-owned investment company Johor Corporation is in the midst of privatising DBHD.
Separately, DBHD also told Bursa Malaysia the contract tenure of its group chief operating officer Azhari Abdul Hamid will be ending today and he will be appointed as the managing director of HC Duraclean Sdn Bhd, a subsidiary of DBHD.
Azhari holds 291,854 ordinary shares representing 14.59 per cent stake in HC Duraclean. - Bernama
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