KUALA LUMPUR: OCR Group Bhd
announced that its renounceable rights issue with free warrants reached a 101.1% subscription rate, raising gross proceeds of RM46.8 mil.
The integrated property developer said the rights issue involved the issuance of up to 1.3 billion new ordinary shares at an issue price of RM0.035 per rights share, based on two rights shares together with two free detachable warrants for every three existing OCR shares held.
The rights issue received total of applications for 1.35 billion rights shares worth RM47.3mil, underscoring investor confidence in OCR’s growth strategy.
“The capital raised will accelerate the development of our project pipeline of over RM2bil, including key projects like Kyra in Shah Alam, OCR Templer at Rawang, and Vertex Kuantan City Centre,” managing director Billy Ong Kah Hoe said in a statement.
At an issue price of RM0.035 per rights share, the rights issue raised approximately RM46.8mil in proceeds.
OCR said the majority 80.3% of proceeds will be utilised to accelerate the development of key projects, including Kyra in Shah Alam, OCR Templer at Rawang, and Vertex Kuantan City Centre in Pahang, with a combined estimated gross development value (GDV) of over RM2bil.
Of the remaining proceeds, 10.7% will be used to strengthen OCR’s financial position by repaying RM5mil in borrowings and enhancing its balance sheet.
Additionally, 9.0% will be allocated primarily for working capital needs (6.4%), with the remaining 2.6% designated to cover estimated expenses for the corporate exercises.
OCR said the warrants are exercisable anytime within a period of three years commencing from and including the date of issue of the warrants.
Upon full exercise of the warrants, the group will raise additional gross proceeds of up to RM46.8mil, which will be used to finance future working capital requirements, such as staff costs and other operating and administrative expenses.
The rights shares and warrants are expected to be listed on the Main Market of Bursa Securities on Oct 7.
