Bina Puri to place out a third of share base

Bina Puri to place out a third of share base
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Friday, 12 April 2013 19:24


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KUALA LUMPUR (April 12): BINA PURI HOLDINGS BHD [] has proposed to undertake a private placement of up to 44.11 million new shares to raise funds which will finance the builder's capital needs and repay its bank loans.

In a filing to Bursa Malaysia today, Bina Puri said the exercise includes the sale of up to 88.22 million free detachable warrants.

The placement shares account for 34% of the firm's enlarged issued share base, Bina Puri said.

The firm said the issue price for the shares will be fixed by the company at a later date after receiving relevant approvals.

The firm said the shares will not be priced at a discount of more than 10% than the five-day volume weighted average market price of the stock before the price-fixing date.

The issue price will also not be less than its shares’ par value of RM1.

“For information, Bina Puri’s shares have been traded below its par value of RM1 for the past one year prior to this announcement,” said the firm.

Should it be able to fix the issue price at RM1, Bina Puri expects to raise gross proceeds of up to RM44.11 million.

The private placement, Bina Puri said, is not expected to have an immediate material effect on its earnings for the financial year ending December 31, 2013 (FY13).

“(The placement) is only expected to be completed in the fourth quarter of 2013," it said.