PETALING JAYA: Yong Tai Bhd proposes to undertake a private placement exercise to raise up to RM17.1 million.
The company said in a filing with the stock exchange that the exercise entails an issuance of up to 10% of its total number of issued shares to third party investors to be identified later.
Based on the indicative issue price of 33 sen per placement share, the proposed private placement is expected to raise gross proceeds of up to RM17.1 million to partially finance the development of Courtyard by Marriott in Malacca, infrastructure cost for Impression City as well as working capital.
Yong Tai said the private placement is the most appropriate avenue of fund raising as it enables the company to raise additional funds without incurring interest costs as compared with conventional bank borrowings.
It also provides the company with an expeditious way of raising funds from the capital market as opposed to other forms of fund raising.
Yong Tai’s share price closed 2 sen or 5.3% lower at 35.5 sen on 11.9 million shares done.
Source: The Sun Daily