Gadang proposes private placement to expand property development biz

by **Cals** Tue 08 Mar 2016, 07:42

Gadang proposes private placement to expand property development biz

By Supriya Surendran / theedgemarkets.com | March 7, 2016 : 6:42 PM MYT

KUALA LUMPUR (March 7): Gadang Holdings Bhd is proposing to undertake a private placement exercise in order to raise funds for the expansion of its property development business, which it expects will contribute positively to the group’s future profitability.

In a filing with Bursa Malaysia today, Gadang said the expansion activities for its property development segment may include potential acquisition of additional viable land banks, and property development and investment projects.

The private placement will entail the issuance of up to 23.51 million shares or 10% of its issued and paid-up capital, the company said.

The placement share will not be priced at more than 10% discount to the five-day volume weighted average market price of Gadang's share prices, immediately before the price fixing date.

"In any event, the placement shares will not be priced lower than its par value of RM1 each," said Gadang, whose businesses include construction and property development.

Assuming an indicative issue price of RM1.88 per share, the proposed private placement is expected to raise gross proceeds of up to RM44.2 million.

Gadang said the placement shares will be issued to third party investors, who will be identified at a later date.

Gadang’s main shareholders are its managing director Tan Sri Kok Onn and his wife Puan Sri Chan Ngan Thai, who together control 45.96% of the group.

At the closing bell, Gadang shares were unchanged at RM2.10, with a market capitalisation of RM491.39 million.