KUALA LUMPUR (April 21): Chin Hin Group Property Bhd (KL:CHGP) has decided not to proceed with the remaining portion of its private placement exercise after the expiry of the extended implementation period.
The property developer would not seek a further extension of time, according to its filing with Bursa Malaysia on Tuesday. This means the company will not proceed with raising the remaining funds after securing RM73.9 million out of the planned RM105 million from the placement.
“The company has decided not to place out the remaining placement shares available for placement. As such, the private placement is deemed completed today,” Chin Hin Property said, without providing further details.
The private placement, first announced in February 2024, aimed to raise up to RM105 million through the issuance of up to 132 million new shares, representing 20% of the group's enlarged share base.
Proceeds from the placement were earmarked to fund two residential developments undertaken via a joint venture with Fiamma Holdings Bhd (KL:FIAMMA). The projects carry a combined development cost of about RM1.06 billion.
Chin Hin Group Property has only completed two tranches of the private placement, issuing a total of 64.3 million shares at RM1.15 each, raising about RM73.9 million.
On April 2, the company decided to withdraw an application to extend the exercise by a further six months, just one day after submitting the request. At the time, the company cited prevailing market uncertainties and the viability of alternative funding options as reasons for reconsidering the exercise.
Chin Hin Group Property had previously secured three extensions to complete the placement. The original deadline of Oct 23, 2024 was extended to April 21, 2025, then to Oct 21, 2025, and finally to April 21, 2026.
Shares in Chin Hin Group Property closed unchanged at RM1.08 on Tuesday, valuing the company at RM1.50 billion.