KUALA LUMPUR (March 27): O&C Resources Bhd (OCR) seeks to raise up to RM58.59 million through issuance of up to 97.65 million new shares in OCR, representing up to 10% of its enlarged issued shares, for operating expenditure of existing projects and to pay staff costs.

In a filing with Bursa Malaysia today, OCR said it intends to place out the placement shares to independent third party investors to be identified later.

Subject to market conditions and the timing of identification of placees, OCR plans to implement the proposed private placement in one or more tranches within six months from the date of approval from Bursa Securities.

"The implementation of the placement arrangement in multiple
tranches would provide flexibility to the company to procure interested investors to subscribe for the placement shares within the approval period as approved by Bursa Securities," it said.

"If issued in multiple tranches, the issue price for each tranche of the placement shares may be determined separately," OCR added.

OCR said based on an indicative issue price of 60 sen per placement share, gross proceeds of up to RM58.59 million are expected to be raised.

OCR intends to utilise the proceeds for its Affordable Housing Development Scheme with Yayasan Pahang in Pahang and its housing project on 8.7 acres of land situated in Teras Jernang, Bangi.

OCR shares were up 0.5 sen or 0.82% to close at 61.5 sen today, for a market capitalisation of RM147.27 million.