KUALA LUMPUR: I-Berhad expects to raise up to RM150 million from a rights issue of three-year convertible cumulative preference shares.
The proceeds will be used to grow its property investment and hospitality portfolio and property development segment.
The company will use the proceeds on its ongoing property projects such as a corporate office tower, the DoubleTree by Hilton Hotel and the 8Kia Peng @ KLCC luxury residential tower.
“With progress of the RM1 billion investment property programme on track, we are gearing ourselves for the next growth trajectory, for which we are putting in place a sustainable funding strategy to realise our vision,” said I-Berhad executive chairman Tan Sri Lim Kim Hong in a statement.
I-Berhad said the rights issue would provide shareholders further avenue to participate in its prospects and future growth while receiving fixed dividends on the redeemable cumulative convertible preference shares.
It had earlier announced its plans to build up its investment properties and hospitality portfolio worth RM1 billion, which is aimed at providing a strong recurring income stream.
As at the end of last year, the group had an investment property and hospitality portfolio worth RM640 million, comprirsing a date centre, 7,700 parking bays, the Best Western @ i-City hotel, the i-City Convention Centre and a 40 percent share of the Central i-City Shopping Centre.
I-Berhad expects its portfolio to increase by up to RM300 million over the next five years with the completion of the DoubleTree by Hilton Hotel, the associated convention centre and the Grade A and GBI-rated corporate office tower as well as additional 3,000 parking bays.