MKH Bhd has proposed a one-for-10 rights issue to raise about RM80 million to fund the group’s property development activities. Along with the rights issue will be a two-for-one bonus issue.
MKH said it intends to use the funds raised from the exercise to finance infrastructure related to its property development, as well as for payment of landowners’ entitlement, construction of a KTM commuter station in Kajang, and as working capital.
The renounceable rights issue comprises 45.4 million new shares of RM1 each at an issue price to be announced later. The bonus issue, meanwhile, would consist of 90.81 million new shares.
“Barring any unforeseen circumstances, and subject to all required approvals being obtained, the [exercise] is expected to be completed in the second quarter of 2017,” it said.