I-Bhd proposes rights issue to raise RM150m

This article first appeared in The Edge Financial Daily, on July 11, 2019.
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KUALA LUMPUR: 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 yesterday, I-Bhd said the proposed rights issue is to enable the group to raise funds for its property investment or hospitality portfolio and property development businesses.

I-Bhd said the proceeds would be allocated for the construction of its property investment or hospitality projects — the Corporate Office Tower and DoubleTree by Hilton Hotel.

It will also set aside funds to build its luxury residential tower 8 Kia Peng @ KLCC, with an estimated gross development value of RM780 million.

The issue price of the RCCPS and the entitlement basis for the proposed rights issue had yet to be fixed. It expects the corporate exercise, for which AmInvestment Bank has been appointed as adviser, to be completed in the fourth quarter of 2019.

I-Bhd shares closed at 37.5 sen apiece yesterday, giving it a market capitalisation of RM375.34 million. In the past 12 months, the stock have retreated 21%.