Mah Sing Group Bhd plans to raise up to RM400 million for its future expansion, via a renounceable rights issue with
free warrants, followed by a one for every five share bonus issue for shareholders.
Its Group Managing Director/Group Chief Executive Tan Sri Leong Hoy Kum said the proposed rights issue with warrants would be used to part finance its property development expenditure, future land acquisitions and general working capital requirement.
"This is part of our prudent management of capital structure to maintain a healthy and optimum capital base," he said in a statement today.
He said the entitlement basis and issue price have not been fixed yet and will be finalised once Mah Sing obtains the approvals required for the exercise.
free warrants, followed by a one for every five share bonus issue for shareholders.
Its Group Managing Director/Group Chief Executive Tan Sri Leong Hoy Kum said the proposed rights issue with warrants would be used to part finance its property development expenditure, future land acquisitions and general working capital requirement.
"This is part of our prudent management of capital structure to maintain a healthy and optimum capital base," he said in a statement today.
He said the entitlement basis and issue price have not been fixed yet and will be finalised once Mah Sing obtains the approvals required for the exercise.
"This is to provide flexibility in respect of the pricing of the rights shares and the rights shares to be issued.
"Nevertheless the issue price for the rights is expected to be at a discount of at least 25 per cent to the theoretical ex-rights price based on the five-day volume weighted average market price of Mah Sing shares immediately preceding
the price fixing date."
As at November 2012, Mah Sing has done four land deals for this year with combined gross development value of RM5.88 billion.
With these acquisitions, it has 40 projects with unbilled locked in sales and remaining gross development value estimated at more than RM19 billion.
He said 77 per cent of its 2013 sales target of RM3 billion is expected to come from landed residential projects and niche size high rise projects on the back of very strong demand. Bernama
Read more: Mah Sing to raise RM400m for expansion http://www.btimes.com.my/Current_News/BTIMES/articles/20121210183419/Article/index_html#ixzz2EekwfwgP
