WCT targets RM178m gross proceeds
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.
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.