WCT tar­gets RM178m gross pro­ceeds

New Straits Times - - Business - Farah Adilla

KUALA LUMPUR: WCT Hold­ings Bhd is ex­pected to raise gross pro­ceeds of RM178 mil­lion from the first tranche of its pri­vate place­ment af­ter fix­ing the is­sue price at RM1.77 a share.

The first tranche in­volved the is­suance of 100.46 mil­lion new shares, or eight per cent of WCT’s to­tal 1.26 bil­lion shares as on Wed­nes­day.

“The place­ment shares will be listed on the Main Mar­ket in due course,” it said in a fil­ing to Bursa Malaysia yes­ter­day.

WCT said the fixed is­sue price rep­re­sented a dis­count of four per cent to its five-day vol­ume weighted av­er­age price of RM1.84 up to Wed­nes­day.

The trad­ing of WCT’s se­cu­ri­ties and its struc­tured war­rants was halted from 9am to 10am fol­low­ing the an­nounce­ment.

On Jan­uary 18, WCT said it was un­der­tak­ing a cor­po­rate ex­er­cise to fi­nance its re­pay­ment of bank bor­row­ings and as work­ing cap­i­tal.

Up to 40 per cent of the gross pro­ceeds would be set aside to re­pay the group’s RM1.02 bil­lion bank bor­row­ings as at Septem­ber 30 last year.

The re­main­ing will be used to fund on­go­ing con­struc­tion and prop­erty devel­op­ment projects.

These in­clude the con­struc­tion and com­ple­tion of viaduct guide­way and other as­so­ci­ated works from Ban­dar Malaysia South Por­tal to Kam­pung Muhib­bah un­der the Mass Rapid Tran­sit 2 project as well as the up­grad­ing of PanBor­neo High­way in Sarawak.

The pro­ceeds will also be used to part-fi­nance the devel­op­ment cost of the Paradigm Mall in Jo­hor Baru, The Lead Res­i­dence, Klang, and The Waltz Res­i­dence in Kuala Lumpur.

WCT closed 10 sen higher to RM1.94 on Bursa Malaysia yes­ter­day.

WEB­SITE PIC

WCT Hold­ings Bhd says part of the pro­ceeds from the first tranche of its pri­vate place­ment will be used to part-fi­nance the devel­op­ment cost of the Waltz Res­i­dence in Kuala Lumpur.

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