KUALA LUMPUR (Aug 2): Construction and property group WCT Holdings Bhd (KL:WCT) plans to raise up to RM163.06 million via a private placement of shares to third-party independent investors.

The fundraising exercise involves the issuance of 141.67 million new shares, equivalent to up to 10% of its 1.42 billion issued shares.

Of the planned RM163.06 million raised — assuming the maximum number of placement shares are issued at an issue price of RM1.151 per placement share — RM50 million will be used to repay bank borrowings while RM112.76 million has been allocated for working capital for its ongoing construction projects.

WCT’s total bank borrowings amounted to RM3.15 billion as at end-March 2024, representing a gross gearing of 0.86 times. The private placement exercise will complement the group’s ongoing de-gearing initiatives which aims to reduce the gross gearing to below 0.60 times.

Last month, WCT announced plans to establish and list a real estate investment trust on the Main Market of Bursa Malaysia which will allow the group to monetise its investment properties.

WCT expects the private placement exercise to be completed in the fourth quarter of 2024. Maybank Investment Bank has been appointed as the principal adviser and placement agent for the exercise.

At Friday’s closing bell, WCT’s share price was down 15 sen or 11.81% at RM1.12, valuing the company at RM1.59 billion.