Tuesday 23 Apr 2024
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KUALA LUMPUR (March 8): Yong Tai Bhd has proposed to raise up to RM17.1 million via a private placement to third-party investors to be identified later, which will be used to partly finance some of its projects.

In a filing with Bursa Malaysia today, the group said the proposed private placement will involve the issuance of up to 51.82 million placement shares, representing not more than 10% of its issued shares.

Based on an indicative issue price of 33 sen per share, which represents a discount of 8.33% to the five-day volume weighted average market price of Yong Tai shares, the group could raise between RM16.03 million and RM17.1 million.

Out of the maximum RM17.1 million that could potentially be raised, RM8.55 million will be used to partly finance the Courtyard by Marriott project in Melaka, while RM5.46 million will be used to partly finance the infrastructure cost for the Impression City development, also in Melaka.

Meanwhile, RM3 million will be used for working capital and the balance to cover the expenses of the exercise.

Yong Tai said the proposed private placement is the most appropriate fundraising avenue, as it enables the company to raise funds without incurring interest costs, while providing an expeditious way to raise funds from the capital market and increases the size of the company’s shareholders’ funds.

“Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposed private placement is expected to be completed by the second quarter of 2019,” it added.

Yong Tai shares fell 2 sen or 5.33% to close at 35.5 sen today, giving it a market capitalisation of RM172.4 million.

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