IN line with its plans to strengthen its operations as well as to explore new opportunities, Majuperak Holdings Bhd is considering a private placement exercise.
The exercise will enable the company to raise funds to support its operating expenditures, repay bank borrowings and fund upcoming projects.
Majuperak’s core businesses are in the realm of property development and realty business, infrastructure and energy segment. In 2019, the group ventured into new business segment in the asset and facility management sector.
In the proposal which is due for completion in 2Q 2021, Majuperak plans to issue up to 56.66 million new shares, which account for not more than 20% of its total number of issued shares.
This takes into account the additional COVID-19 relief measures granted by Bursa Securities on April 16 last year in relation to the 20% of general mandate.
On Feb 10, Majuperak has obtained approval from shareholders for the exercise to proceed during its extraordinary general meeting (EGM).
Assuming an indicative issue price of 37 sen per share, the proposed placement may raise up to RM20.96 mil.
Of the total proceeds expected to be raised, RM7 mil has been earmarked for a facility management project involving the provision of clinical support service for four Health Ministry (MOH) clinics in Terengganu in addition to the 10 clinics already serviced by the group.
Meanwhile, RM11.46 mil will be allocated for administrative and operating expenditures to sustain Majuperak’s operations for the year ahead. Additionally, RM2 mil will be utilised for the settlement of the company’s existing overdraft facility.
“Given the unprecedented and challenging times due to the COVID-19 pandemic, we are undertaking this exercise to ensure that we are able to sustain the growth momentum that the group has been experiencing.,” Majuperak’s group CEO Nizran Noordin pointed out.
“We are hopeful that this exercise will provide the necessary financial support for us to operate efficiently while exploring prospects in the facility management segment.”
At the close of this morning’s session, Majuperak was down 0.5 sen or 1.23% to 40 sen with 30,000 shares traded, thus valuing the company at RM113 mil. – Feb 24, 2021
