Bina Puri proposes private placement

PETALING JAYA: Bina Puri Holdings Bhd plans to raise between RM8.82 and RM9.34 million depending on the issued share price, from a proposed private placement exercise entailing not more than 10% of its share capital, for working capital and repayment of bank borrowings.

The group said in a Bursa Malaysia filing that the bulk of the proceeds amounting to between RM6.56-RM7.06 million will be used as working capital purposes such as payments to suppliers, contractors, consultants and property development expenses as well as other operating and administrative expenses.

At this juncture, the group has not earmarked allocations of the proceeds for any specific projects in view of having flexibility in determining the ultimate use of the proceeds while also providing comfort to its shareholders that the proceeds will be used for the group’s major business segments which is construction and property development as well as other operating and administrative expenses .

Besides that, it has also allotted RM2 million for repayment of loans whereas RM260,000-RM270,000 will be used to foot expenses for the corporate exercise.

The exercise is expected to be concluded in the first half of 2018 and the proceeds expected to be utilised within six months thereafter.

It has already obtained shareholders green light for the exercise in an AGM convened on June 21.

Bina Puri’s shares remained unchanged at 36.5sen with some 253,600 shares done.