KUALA LUMPUR (July 25): Gabungan AQRS Bhd has fixed the issue price for its placement of 19.48 million shares at RM1.35 per share.

In a filing to Bursa Malaysia, the construction and property development group said the issue price represents a discount of about 5.59% to the five-day volume weighted average market price (VWAMP) up to July 24 of RM1.43 per share.

According to bankers, the placement was covered about three times with bids mostly coming from institutional investors.

On June 30, Gabungan AQRS announced the acquisition of the entire stake in Monolight IBS Building System Sdn Bhd for RM26 million along with the proposed private placement.

After the group announced the two proposals, its share price fell 5.71% to RM1.32 by July 11.

Gabungan AQRS has said the private placement was to raise funds to pay for its working capital requirements.

It said the proceeds earmarked for working capital will enable the group to part finance the various progression stages for the group's ongoing construction projects, including the Sungai Besi - Ulu Kelang (SUKE) Highway, and Pusat Pentadbiran Sultan Ahmad Shah, Kuala Kuantan (PPSAS).

Shares in Gabungan AQRS closed two sen or 1.4% higher at RM1.45 today for a market capitalisation of RM566.06 million. Year to date, the stock has surged 60.22% from 90.5 sen.