Econpile raises RM41.2 million in private placement
KUCHING: Econpile Holdings Bhd (Econpile) has raised RM41.2 million in proceeds through a private placement exercise, involving the issuance of 80 million new shares at an issue price of RM0.515 per share.
The issuance of placement shares to institutional investors represented 6.0 per cent of the group’s existing total number of issued shares of 1,338 million, increasing its enlarged number of issued ordinary shares to 1,418 million.
The new shares was listed on the Main Market of Bursa Malaysia Securities Berhad yester.
Its executive director/ group chief executive officer Raymond Pang said, “While we have our shareholders’ mandate to issue up to 10 per cent of new shares of the Group’s total share base, we only issued 6.0 per cent just to raise a requisite amount to fund our working capital and for partial repayment of banker’s acceptance.
“As a matter of fact, the private placement of 80 million shares was oversubscribed, underscoring the strong confidence in the Group to stay resilient in the construction sector even in this challenging landscape.
“This corporate exercise was essentially to give established institutional funds an opportunity to participate in the advancement of Econpile.
“We are pleased with the overwhelming support of long-term funds for this exercise, and believe that it speaks volume of their trust in our ability to deliver sustainable growth.”
With the proceeds, the group’s proforma net gearing will be pared down from 0.17 times to 0.06 times as at September 30, 2020, well within the group’s comfortable level.
The sturdier balance sheet also supports the group’s orderbook of about RM950 million, which was recently bolstered by the US$87.5 million (approximately RM376.4 million) contract to undertake piling and substructure works for an integrated entertainment complex in Cambodia.
Other contracts in the order book include works for Phase 2 of Pavilion Damansara Heights, Light Rail Transit 3 and Terra Putrajaya mixed development.