Avillion jumps 15% on private placement plan

-A +A

KUALA LUMPUR (Oct 18): Avillion Bhd jumped 15.38% at mid-morning after the firm said it plans to raise up to RM22.67 million via a private placement up to 20% of its total number of issued shares to independent third party investors to be identified later, to help ease the group’s cash flow requirements by providing it with immediate funds for asset enhancement and refurbishment of the group's hotels and resorts. The money will alos be used to repay bank borrowings, for use as general working capital and to fund its property development project in Johor.

At 10.13am, Avillion rose 2 sen to 15 sen, valuing it at RM141.66 million.

It also plans to undertake an issuance of up to 566.64 million free warrants on the basis of one warrant for every two shares held.