KUALA LUMPUR: Salutica Bhd
has proposed a private placement to raise up to RM16.18mil as the company plans to diversify into the property development and construction business.
In a filing with Bursa Malaysia, Salutica said the placement would involve up to 30% of its issued shares, excluding treasury shares, to third-party investors to be identified later.
Based on an illustrative issue price of 11.5 sen per share, the placement is expected to raise gross proceeds of up to RM16.18mil.
The issue price will be fixed later at a discount of not more than 20% to the five-day volume-weighted average market price of Salutica shares immediately before the price-fixing date.
Of the proceeds, Salutica said RM8mil will be allocated to the expansion of its proposed property and construction business, while up to RM8mil will support the expansion of its existing manufacturing business.
Salutica plans to diversify into property development, construction and related activities, including design-and-build works, the trading and supply of construction materials, property management and property investment.
The group currently derives its revenue solely from its manufacturing business, which has been loss-making in recent financial years. Salutica recorded a loss after tax attributable to owners of RM23.75mil for the 12 months ended June 30, 2026, compared with RM29.76mil for the financial year ended June 30, 2025.
Salutica said the diversification would broaden its earnings base and reduce its reliance on manufacturing. The group intends to initially focus on smaller construction and property-related projects before taking on larger projects as it gains experience.
It plans to incorporate a new subsidiary to undertake the property and construction business and apply for a Grade G7 contractor registration with the Construction Industry Development Board.
As at Sept 15, the group had not secured or entered into any construction, property development or property investment projects.
The proposed private placement and diversification are subject to shareholders' approval at an extraordinary general meeting.
