KUALA LUMPUR (April 13): Jade Marvel Group Bhd has proposed to undertake a private placement of not more than 10% of its issued share capital to raise up to RM13.18 million.

The shares will be issued to third party investors who will be identified later, the manufacturing, property and construction group said in a bourse filing. The issue price of the placement shares will also be determined at a later date.

For illustrative purpose, the indicative issue price of the placement shares is assumed at RM1.04 per share, which represents a discount of 6.31% to the five-day volume weighted average price of Jade Marvel shares up to the latest practicable date of RM1.11.

Based on the RM1.04 indicative price, the placement is expected to raise gross proceeds of up to RM13.18 million, which will be utilised for property development and repayment of bank borrowings, the group said.

Jade Marvel is also proposing a share split of every existing share to two shares, to improve share trading liquidity and encourage greater participation by investors.

The proposals are expected to be completed by the second quarter of calendar year 2021, the group said.

Jade Marvel shares were last traded at RM1.08, giving a market capitalisation of RM136.93 million.