KUALA LUMPUR (Oct 2): Johor-based property developer KSL Holdings Bhd has proposed a one-for-one bonus issue of up to 487.1 million shares, on the basis of one bonus share for every one existing KSL share held.
The 1-for-1 bonus issue would increase the group’s share capital to RM487.1 million comprising 974.3 million shares of 50 sen par each, from RM194.3 million comprising 388.7 million shares of 50 sen par each as at Sept 30, 2014.
Meanwhile, KSL has also proposed to implement a Dividend Reinvestment Plan (DRP) to enhance trading liquidity and capital management respectively.
“We have put in place, our strategies to grow the Gross Development Value (GDV) of our developments and property investments in the coming years. In light of this, the KSL Group is certainly set for a high growth trajectory, going forward,” said Ku Hwa Seng, chairman of KSL Holdings Bhd in a statement.
“These corporate exercises are therefore reflective of the Group’s scale of operations. The Bonus Issue allows for greater shareholder participation through improved trading liquidity, while the DRP is targeted not only at implementing effective capital management, but also allow shareholders to further participate in our growth story,” he added.
At present, KSL’s property development segment has total GDV of approximately RM40 billion, which is expected to sustain the group for up to 17 years. KSL also intends to expand its property investments segment, in order to establish a strong recurring income stream.
Property development currently makes up 80% of the group’s revenue, with property investment contributing the balance 20%.
Among its completed notable projects are Nusa Bestari — a mature township in Nusajaya, Iskandar Malaysia; as well as KSL City — a RM5 billion GDV integrated development in the heart of Johor Bahru, comprising premier lifestyle retail destination KSL Mall, KSL Hotel and Resort, and the luxurious high-rise condominiums of D’Esplanade Residences.