Iskandar Waterfront City Bhd (IWCity) is planning to undertake a private placement of its shares to raise funds for the group’s property development and construction activities.
According to a bursa statement, IWCity said the exercise would entail the issuance of up to 66.97 million shares, representing up to 10 per cent of the company’s enlarged issued and paid-up share capital.
“Assuming the placement shares are issued at an illustrative issue price of 98.42 sen per share, the proceeds to be raised is RM65.9 million,” the company said.
About 68.12 per cent of the total, which is around RM44.9 million, will be utilised to pay sub-contractors, suppliers and professionals for on-going projects in relation to the Pengerang and Eastern Dispersal Link contracts.
IWCity will also be using RM15.2 million for land-related expenses, RM4.314 million for general working capital and RM1.5 million for the private placement expenses.
Subject to the approval of relevant authorities, the exercise is expected to be completed by the third quarter of the year.