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Thursday, 19 January 2017

(The Star) WCT proposes to issue new shares to raise RM212mil

PETALING JAYA: WCT Holdings Bhd has proposed to place out new shares to raise up to RM212mil to partly pay off its bank borrowings and for working capital.
In a filing with Bursa Malaysia yesterday, the construction and property company said it is proposing to place out 125 million new shares, which represent about 10% of its existing issued and paid-up share capital.
The price tag for the placement could be fixed at a discount of not more than 10% to the five-day, volume-weighted average market price of WCT shares.
Shares in WCT closed unchanged at RM1.88 yesterday.
WCT, which saw the entry of Pavilion group’s Tan Sri Desmond Lim Siew Choon in November last year, said 40% of the proceeds raised from the share placement would be used to partly repay bank borrowings.
As at Sept 30, 2016, WCT’s bank borrowings stood at about RM1.02bil.
The remaining 60% of the proceeds would be utilised to fund some of the group’s ongoing projects, including the viaduct guideway under the MRT2 project, the development and upgrading of Pan Borneo Highway Phase 1, and to part-finance the development cost of Paradigm Mall in Johor (pic), as well as property development projects in Klang and Kuala Lumpur.
“After taking into consideration the various methods of fund raising available such as debt financing/bank borrowing as well as the capital structure of the company, the board is of the view that the proposed placement is the most appropriate avenue to raise the additional working capital and to repay bank borrowings.
“At the same time, enable the company to enlarge its equity base after taking into account the group’s current level of business operations,” WCT said.
It said the proposed placement would be subject to Bursa Malaysia’s approval and other relevant authorities.

The company had obtained the approval of its shareholders at its fifth AGM in May 2016.