KUALA LUMPUR (July 10): Property developer I-Bhd is proposing a renounceable rights issue of three-year redeemable convertible cumulative preference shares (RCCPS) to raise up to approximately RM150 million.
In a filing with Bursa Malaysia today, I-Bhd said the proposed rights issue is to enable the group to raise funds to fund its property investment/hospitality portfolio and property development businesses.
I-Bhd further detailed that the proceeds would be allocated to fund the construction of its property investment/hospitality projects, which are the Corporate Office Tower and DoubleTree by Hilton Hotel.
For its property development business, I-Bhd said the funds will be used to fund the construction of its luxury residential tower 8Kia Peng @ KLCC with an estimated gross development value (GDV) of RM780 million.
The issue price of the RCCPS and the entitlement basis for the proposed rights issue have yet to be fixed.
After the rights issue is executed, the group said the consolidated earnings per share of I-Bhd would correspondingly be diluted as a result of the increase in number of shares as and when the RCCPS are converted.
Nevertheless, it explained that the proposed rights issue is expected to contribute positively to the earnings of I-Bhd Group as and when benefits from the utilisation of proceeds materialise.
Barring any unforeseen circumstances and subject to all the required approvals being obtained, I-Bhd said the proposed rights issue is expected to be completed in the fourth quarter of 2019.
AmInvestment Bank has been appointed as the adviser in relation to the rights issue.