KUALA LUMPUR: Property developer I-Berhad is proposing a renounceable rights issue of three-year redeemable convertible cumulative preference shares (RCCPS) to raise up to approximately RM150 million.
In a filing with Bursa Malaysia yesterday, I-Berhad said the proposed rights issue is to enable the group to raise funds for its property investment or hospitality portfolio and property development businesses.
I-Berhad said the proceeds would be allocated for the construction of its property investment or hospitality projects – the Corporate Office Tower and the DoubleTree by Hilton Hotel.
It will also set aside funds to build up its luxury residential tower 8 Kia Peng @ KLCC< with an estimated gross development value of RM780 million.
The issue price of the RCCPS and the entitlement basis for the proposed rights issue had yet to be fixed. It expects the corporate exercise, for which AmInvestmentBank has been appointed as adviser, to be completed in the fourth quarter of 2019.
I-Berhad shares closed at 27.5 sen a piece yesterday, giving it a market capitalisation of RM375.34 million. In the past 12 months, the stock have retreated 21%