OWG fixes private placement shares at RM2.20 a piece

by **Cals** Wed 03 Feb 2016, 01:47

OWG fixes private placement shares at RM2.20 a piece

By Meena Lakshana / theedgemarkets.com | February 2, 2016 : 9:45 PM MYT

KUALA LUMPUR (Feb 2): Only World Group Holdings Bhd (OWG) has fixed the issue price for its proposed a private placement of up 10% of its total issued and paid-up share capital at RM2.20 per placement share.

This would mean the exercise is expected to raise RM48.84 million.

In a filing with Bursa Malaysia, OWG said the issue price represents a discount of approximately 3.6% to the five-day volume weighted average price (VWAP) of OWG shares up to and including Jan 29, 2016, being the market day immediately prior to the price fixing date of RM2.2822 per OWG share.

OWG said the proposed private placement maybe implemented in tranches.

On Feb 18, OWG said it would raise funds via a private placement of shares to fund its Komtar Tower revitalisation project.

The food service and amusement park operator said the exercise, comprising up to 22.2 million shares, will be issued to independent third party investors to be identified later.

According to the group, RM48 million from the gross proceeds it expects to raise will be set aside to fund part of the expansion cost related to Komtar Tower's revitalisation project, which amounts to about RM180 million.

The remaining cost of the Komtar Tower revitalisation project will be funded via internally-generated funds and bank borrowings, it added.

The group expects the private placement to be completed by the first quarter of 2016.

OWG shares closed 2 sen or 0.89% higher at RM2.27 today, for a market capitalisation of RM503.94 million.