Kerjaya Prospek Property proposes RM324.88mil right issue to fund property projects, repay borrowings


KUALA LUMPUR: Kerjaya Prospek Property Bhd (KPProp) has proposed a renounceable rights issue of up to RM324.88 million to fund its existing and future property development projects, as well as to repay bank borrowings.

In a filing with Bursa Malaysia, the company said the proposed issuance involves 1.16 billion renounceable rights issues of redeemable convertible unsecured loan stocks (RCULS) with an eight-year tenure and an annual interest rate of 4.2 per cent, priced at 28 sen per unit.

"The nominal value was fixed after considering the total proceeds required to meet the funding needs of Kerjaya Prospek and its group of companies,” it said.

KPProp said the proposed rights issue of RCULS will be undertaken on a minimum subscription level basis to raise a minimum gross proceeds of RM227.28 million.

"To achieve the minimum subscription level, the company has secured a written, irrevocable, and unconditional undertaking dated March 5, 2025, from its substantial shareholder, Javawana Sdn Bhd, to subscribe for proceeds amounting to no less than RM227.27 million,” it said.

The company added that the proceeds from the listing of RCULS will be utilised within 24 months for funding existing and future property development projects, while bank borrowings will be repaid within three months. - Bernama 

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