KUALA LUMPUR: Property developer Mulpha Land Bhd plans to undertake a private placement of up to 10% of its issued share capital to finance a land acquisition, repay borrowings and as its working capital.
In a filing with Bursa Malaysia today, Mulpha Land (fundamental: 1.3 ; valuation: 1.1) said the proposed private placement will be issued at any point of time to third party investor(s) to be identified at an issue price to be determined later.
“For illustrative purposes, based on the issued and paid-up share capital of Mulpha Land as at April 24, 2015 of RM22.83 million, comprising 228.3 million shares, a total of up to 22.83 million shares may be issued,” the company said.
Mulpha Land said based on the indicative issue price of 82 sen per placement share, the proposed private placement is expected to raise gross proceeds of up to RM18.72 million.
According to a filing to Bursa dated April 23, Datuk Fakhri Yassin Mahiaddin, eldest son of Deputy Prime Minister Tan Sri Muhyiddin Mohd Yassin, held 75.01 million shares or an indirect interest of 32.86% in Mulpha Land via Teladan Kuasa Sdn Bhd — which made him the largest shareholder of Mulpha Land.
Subsequently, he was appointed the executive chairman of the company on April 18, 2015.
Mulpha International Bhd, which used to be the largest shareholder of Mulpha Land, held a direct interest of 26.89% in Mulpha Land, according to Bursa.
It is worth noting that the share price of Mulpha Land has risen sharply since the beginning of the year, but took a “U-turn” in April.
The counter was traded at 39 sen on Jan 5 and hit a multi-year high of 99 sen, before closing at 93.5 sen on April 21. It has since fallen; it closed 1 sen lower today at 80 sen, giving it a market capitalisation of RM182.64 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)