KUALA LUMPUR (Dec 3): Malton Bhd (KL:MALTON) said it plans to raise up to RM19.47 million via a private placement of shares to third-party investors to fund its ongoing property development projects.

The placement will comprise up to 53.06 million shares or 10% of the company’s issued share capital, according to the property developer’s filing with Bursa Malaysia.

The proceeds were estimated based on an illustrative price of 36.7 sen per share, with the actual price to be determined later, the filing said. This indicative price reflects a discount of 9.83% to the five-day volume-weighted average price of Malton shares up to Nov 25 of 40.7 sen per share.

Of the proceeds, RM12 million will be allocated to support the group’s ongoing property development projects, including River Park (prime serviced apartments in Bangsar South with an estimated gross development value (GDV) of RM1 billion) and Park Green (low-density freehold serviced apartments in Bukit Jalil with a GDV of RM763 million).

An additional RM7 million will be used to repay bank borrowings. As of Nov 25, the group’s total borrowings stood at RM602.67 million, primarily utilised for financing the working capital needs of its development and construction businesses.

“Malton Group will continue to expand its presence in the property development industry. In this regard, the group has been actively exploring opportunities to enhance its property development pipeline through strategic land acquisitions for potential development," the group said.

Malton said it has not undertaken any other fund raising exercises in the past 12 months.

UOB Kay Hian has been appointed as the adviser and placement agent for the private placement, which is expected to be completed in the first half of 2025.

Shares of Malton closed unchanged at 40.5 sen on Tuesday, giving the Main-Market listed group a market capitalisation of RM213.9 million.