Scien­tex Bhd raises RM156m from pri­vate place­ment

New Straits Times - - Business -

as man­ag­ing di­rec­tor in May 2015.

He as­sured share­hold­ers that he would in­ject a new busi­ness, which is con­struc­tion, into Anzo and re­turn it into prof­itabil­ity.

The com­pany won a slew of con­tracts in the last two years.

Last month, Anzo re­ceived a let­ter of in­tent (LoI) from KL North­gate Sdn Bhd for a con­struc­tion con­tract worth up to RM1.21 bil­lion to con­struct KUALA LUMPUR: Scien­tex Bhd has raised RM156 mil­lion from the is­suance of 20 mil­lion new shares at an is­sue price of RM7.80 per share via a pri­vate place­ment ex­er­cise.

The pro­ceeds will be used to fund ex­pan­sion plans and as work­ing cap­i­tal in the man­u­fac­tur­ing and prop­erty de­vel­op­ment seg­ments.

Ad­di­tion­ally, the in­vest­ment hold­ing com­pany had placed 4.3 per cent of the new is­sues shares to long-term in­sti­tu­tional in­vestors to raise funds for work­ing cap­i­tal and ex­pan­sion plans for its man­u­fac­tur­ing and prop­erty de­vel­op­ment busi­nesses.

Scien­tex said the 20 mil­lion pri­vate place­ment shares were more than two times over­sub­scribed.

“The shares at­tracted longterm in­sti­tu­tional funds of as­set Paragon @ KL North­gate, a mixed-de­vel­op­ment project in Se­layang, Kuala Lumpur.

Anzo ex­pects to start work in the fourth quar­ter of this year via a joint ven­ture with MCC Over­seas (M) Sdn Bhd, which is a unit of China and Hong Konglisted firm, Me­tal­lur­gi­cal Corp Co Ltd.

In March, Anzo's unit, Har­vest Court Con­struc­tion Sdn Bhd, re­ceived a LoI for a con­tract worth man­age­ment com­pa­nies, re­tire­ment and pen­sion funds, in­sur­ance com­pa­nies, foun­da­tions and bank­ing cor­po­ra­tions.

“The is­suance of place­ment shares to these third-party in­vestors rep­re­sented 4.3 per cent of the group’s to­tal num­ber of is­sued or­di­nary shares (ex­clud­ing treasury shares) of 463.6 mil­lion, and raised its num­ber of is­sued or­di­nary shares to 483.6 mil­lion,” said the com­pany.

Man­ag­ing di­rec­tor Lim Peng Jin said de­spite the global eco­nomic dol­drums, the com­pany is con­fi­dent of its growth path in the fu­ture.

The pro­ceeds would en­hance the group’s pro­forma net gear­ing from 0.40 times to 0.25 times as at Jan­uary 31 this year, which is within the man­age­ment’s com­fort­able level of be­low 0.50 times, said Lim. up to RM109.3 mil­lion to un­der­take Phase 2 of the Porto De Me­laka Ho­tel and Re­sort de­vel­op­ment.

The LoI was awarded by Tinta Ang­gun En­gi­neer­ing Sdn Bhd.

The same com­pany had given Har­vest Court a RM153 mil­lion con­tract in Oc­to­ber 2015 for Phase 1 of the ho­tel and re­sort de­vel­op­ment project, to con­struct 120 units of ser­viced suites and 24 spa vil­las. Sharen Kaur


(From left) MCC Over­seas Sdn Bhd com­mer­cial di­rec­tor Tan Sun Kiong, its deputy man­ag­ing di­rec­tor Danny Tsen, Anzo Hold­ings Bhd ex­ec­u­tive chair­man Datuk Seri Ab­dul Azim Mohd Zabidi, its man­ag­ing di­rec­tor Datuk Ed­die Chai Woon Chet and KL North­gate Sdn Bhd di­rec­tor Ng Yin Meng at a media brief­ing in Kuala Lumpur re­cently.

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