KUALA LUMPUR (Nov 13): Tiger Synergy Bhd has proposed to raise up to RM10.5 million via private placement to third-party investors to be identified later.

It said the proposed private placement will strengthen the group's capital position and provide it with the necessary funds for the preliminary expenses of its Alam Impian project in Shah Alam, Selangor.

In a filing with Bursa Malaysia today, Tiger said the proposed private placement will involve the issuance of up to 149.94 million shares, representing not more than 10% of its issued shares. As at Oct 29, the issued share capital of Tiger was RM157.75 million comprising 604.34 million shares.

"Subject to the prevailing market conditions and timing of identification of the placee(s), the proposed private placement may be implemented in one or more tranches.

"As such, there could potentially be several price fixing dates depending on the number of tranches and the timing of implementation of the proposed private placement," Tiger added.

The placement shares will be priced at not more than 10% discount to the five-day volume weighted average market price (VWAMP) of Tiger shares.

Assuming the placement shares are issued at an indicative issue price of 7 sen per placement share, the proposed exercise is expected to raise gross proceeds of between RM4.56 million and RM10.5 million.

"The net proceeds from the proposed private placement will be utilised for the preliminary expenses of the Alam Impian project, which is a proposed mixed-residential development consisting 945 units medium range condominium and 12 units of 3-storey semi-detached houses," said Tiger.

"The group will only be able to launch and complete the Alam Impian project by achieving the projected sales and obtaining further financing through issuance of redeemable convertible notes and/or obtaining new borrowing facilities," it added.

Tiger shares ended the morning session up 0.5 sen or 6.67% at 8 sen today, with 12.49 million shares done, bringing a market capitalisation of RM55.02 million.