Scientex Bhd raises RM156m from private placement
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