KUALA LUMPUR (May 5): Hartanah Kenyalang Bhd (KL:HKB), listed less than a year ago, is now seeking RM15.5 million in fresh capital to fund the Sarawak stadium upgrade and repair works contract.
The placement, involving the issuance of new shares equivalent to 10% of its current share base, comes as the project working capital requirement increased in line with its business operations, the company said in a bourse filing. The illustrative price for the 62 million shares is 25 sen apiece.
Hartanah Kenyalang has earmarked RM15.35 million for working capital for the RM184.32 million Sarawak stadium contract it secured in January this year, while the remainder will be for the exercise’s expenses.
The company noted that it has secured four new contracts with a total project value of RM511.4 million since its listing on the ACE Market in June 2025. The company has also won contracts to develop the Sadong Jaya Mangrove Tourism project and to build immigration post and Sibu Prison.
The new projects require “significant upfront cash outlays, mainly in the form of advance payments to suppliers and subcontractors,” the company said.
While current cash and bank balances are sufficient for day-to-day operations, the Sarawak-based company said it requires “additional cash buffer for further expansion when such opportunity arises” as well as to provide a buffer against potential global economic uncertainties.
The proposed private placement, to be completed by the second quarter of 2026, should be adequate to finance its short- to medium-term business expansion plans, the company added.
Shares of Hartanah Kenyalang ended half a sen or 1.64% lower at 30 sen, valuing the company at RM186 million. Against its initial public offering price of 16 sen per share in June last year, the counter is up 87.5%.