KUALA LUMPUR: Axteria Group Bhd
has proposed a private placement of up to 78.84 million new shares, representing 10% of its issued shares excluding treasury shares.
In a filing with Bursa Malaysia, the property developer said the exercise could raise gross proceeds of about RM7.4mil, based on an illustrative issue price of 9.38 sen per placement share.
Of the proceeds, RM5.1mil has been earmarked for renovation and fit-out works at The Asteria Melaka (Block C), while RM2.15mil will be used for working capital and RM150,000 for expenses related to the placement.
Axteria plans to use the RM5.1mil to fund the first phase of renovation and fit-out works for up to 80 units at The Asteria Melaka (Block C).
As at Oct 6, 137 of the development's 306 units had been sold, representing a take-up rate of about 44.8%.
The company said the placement would enable it to raise funds more quickly than through a rights issue and without incurring interest costs associated with bank borrowings. It would also increase the company’s capital base and strengthen its financial position.
While the placement is expected to dilute existing shareholders’ stakes, Axteria said the proceeds are expected to contribute positively to the group’s future earnings.
The placement shares will be issued to independent third-party investors to be identified later and may be placed out in tranches.
The issue price will be fixed later at a discount of not more than 10% to the five-day volume-weighted average market price of Axteria shares immediately before the price-fixing date.
The exercise is subject to Bursa Malaysia's approval and is expected to be completed in the first quarter of 2027.
