Sunday 14 Jul 2024
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KUALA LUMPUR (Sept 4): Chin Hin Group Property Bhd (CHGP) has proposed a private placement of RM102.36 million to finance the working capital requirements of its property development projects.

The placement involves the issuance of up to 110.07 million new shares, representing not more than 20% of the group’s issued share capital, to independent investors to be identified later, said the group in a stock exchange filing on Monday.

The group has not undertaken any equity fund-raising exercise in the past 12 months.

CHGP said the assumed price of 93 sen for the placement shares represents a discount of  5.9% to the five-day volume weighted average market price of the group’s shares up to the latest practicable date, of 98.82 sen.

Of the RM102.36 million gross proceeds, the group intends to utilise up to RM101.56 million to fund property development projects including Quaver in Sungai Besi, Ayanna in Bukit Jalil, Avantro in Bandar Kinrara and Solarvest in KL Gateway. The projects are expected to be completed between 2026 and 2027.

Meanwhile, the remaining RM800,000 is the estimated expenses for the placement, which is expected to be completed by the second half of this year.

As of June 30, the group had total borrowings of RM324.7 million.

Shares of CHGP finished half a sen or 0.51% lower at 98 sen on Monday, giving the group a market capitalisation of RM537.28 million.

Edited ByS Kanagaraju
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