KUALA LUMPUR (March 28): Kerjaya Prospek Property Bhd (KL:KPPROP) has proposed a rights issue of shares and redeemable convertible unsecured loan stocks (RCULS) to raise up to RM147.18 million, mainly to fund property development projects and repay loans.

The group said it expects the rights issue of one new share for every two shares held at 20 sen per share, totalling 273.82 million shares, to raise RM54.76 million.

Meanwhile, the RCULS — involving the issuance of up to 410.73 million eight-year, 4.2% loan stocks at 22.5 sen each, on the basis of three RCULS for every four shares held — is expected to raise RM92.41 million,

In a bourse filing, Kerjaya Prospek Property said the conversion price of the RCULS has been fixed at 22.5 sen each, representing a discount of 28.84% to the theoretical ex-all price of the group's shares of 31.62 sen.

The group said it will announce the entitlement date of the rights issue at a later date.

It added that its major shareholder, Javawana Sdn Bhd, which holds a 74.11% stake in the group, has committed to subscribing to the rights issue and RCULS based on its ownership, amounting to an estimated RM109.07 million.

Kerjaya Prospek Property's executive chairman Datuk Seri Tee Eng Ho, his wife Datin Seri Toh Siew Chuon and his brother Datuk Tee Eng Seng have deemed interest in Kerjaya Prospek Property via Javawana.

Earlier in March, Kerjaya Prospek Property proposed a two-for-one RCULS aimed at raising RM325 million, with Javawana committing to subscribe not less than RM227.28 million.

The group’s borrowings totalled RM492.74 million as at March 14.

Shares of Kerjaya Prospek Property was last traded on March 26 at 45 sen, giving the group a market capitalisation of RM261 million. Over the past one year, the stock has fallen 39%.