KUALA LUMPUR: Vestland Bhd
has proposed a private placement of up to 94.43 million new shares, representing up to 10% of its issued share capital, to raise gross proceeds of up to RM60.4mil for working capital.
In a filing with Bursa Malaysia, the construction company said the proceeds will mainly be used to fund existing and future construction projects, with RM35.65mil allocated for ongoing projects and RM23.77mil earmarked for future projects.
About RM1.02mil will be used to pay expenses related to the exercise.
The placement shares will be issued to third-party investors to be identified through a book-building exercise at an issue price to be determined later.
The issue price will be fixed at not more than a 10% discount to the five-day volume-weighted average market price immediately before the price-fixing date.
Based on an illustrative issue price of RM0.64 per share, the exercise is expected to raise RM60.4mil.
Vestland said the funds would strengthen its financial position, support working capital requirements for its construction projects and provide additional funding without incurring interest costs associated with borrowings.
“As at March 2026, the group’s outstanding order book stood at approximately RM1.2bil, providing healthy earnings visibility going forward.
“Backed by its technical capabilities, execution track record and client relationships, the group remains well-positioned to pursue further growth opportunities across both private and selected public sector projects,” Vestland said.
The proposed private placement is expected to improve the group's net asset per share to RM0.28 from RM0.24 and reduce its gearing ratio to 1.28 times from 1.62 times, based on its audited financial statements for the financial year ended Dec 31, 2025.
The exercise is subject to Bursa Malaysia's approval for the listing of the new shares and is expected to be completed by the fourth quarter of 2026.
