KUALA LUMPUR (July 22): Ireka Corp Bhd has proposed to undertake a private placement of up to 10% of its total number of issued shares to raise an estimated RM11.58 million for working capital.

The placement will involve 18.67 million shares, which will be issued to third-party investors to be identified later at a yet-to-be issue price, the construction and property development firm said in a bourse filing.

Based on an illustrative issue price of 62 sen per placement share, the exercise is expected to raise RM11.58 million, of which RM11.38 million will be used as working capital, such as staff costs and other operating costs.

“The proposed private placement is expected to contribute positively to the earnings of the company thereafter in view of the utilisation of proceeds,” Ireka said.

It added that the placement is expected to be completed by the fourth quarter of 2021.

Ireka’s share price closed unchanged at 66.5 sen today, valuing the group at RM126.96 million.