WCT plans new placement exercise to raise up to RM242mil

KUALA LUMPUR: WCT Holdings Bhd, which raised RM178mil earlier this year by placing out its shares, proposed a new placement exercise on Monday to raise as much as RM242.2mil more.

The latest proposed placement involved the issuance of up to 140 million new shares, representing 10% of its issued share capital, it said in a filing with Bursa Malaysia.

The construction and property development group said the proceeds would be used for the group’s additional working capital, part repayment of bank borrowings as well as the widening of its equity base.

The latest proposed placement, which may be issued in tranches within six months from the date of Bursa Malaysia Securities’ approval, is expected to raise up to RM242.2mil in gross proceeds based on an indicative issue price of RM1.73 apiece.

However, it said, the final number of placement shares to be issued would depend on the then prevailing market price of WCT shares closer to the implementation of the placement and the demand from the potential placees to be identified.

In April, WCT completed the placement of 100.46 million shares, representing about 8% of its share capital then, at RM1.77 apiece.  The balance 24.54 million shares under its proposed placement of up to 125 million shares (or 10% of its issued and paid-up capital) have not been issued.

“As the approval in-principle of Bursa Securities for the listing of and quotation for the 125 million new ordinary shares pursuant to its approval letter dated March 24, 2017, has since lapsed, the company intends to seek the fresh approval from Bursa Securities for a new placement proposal,” WCT said.

Since the listing of the previous placement shares on April 11, WCT share price has declined 15% to close at RM1.68 on Monday. The price was 1 sen down from Friday’s last traded price, with 2.78 million shares changing hands on the day.