Chin Hin Group Property Bhd (CHGP) has announced a proposal for a private placement amounting to RM102.36 million to cater to the working capital requirements of its property development projects. This placement will involve the issuance of up to 110.07 million new shares, which represents a maximum of 20% of the group’s issued share capital. These shares will be offered to independent investors, the identity of whom will be disclosed at a later date.
CHGP emphasized that it has not engaged in any equity fundraising activities over the past 12 months. The assumed price for the placement shares is 93 sen each, representing a 5.9% discount to the five-day volume weighted average market price of the group’s shares up to the latest practicable date, which was 98.82 sen.
Out of the gross proceeds of RM102.36 million, CHGP intends to allocate approximately RM101.56 million for financing various property development projects. These projects include Quaver in Sungai Besi, Ayanna in Bukit Jalil, Avantro in Bandar Kinrara, and Solarvest in KL Gateway. These developments are expected to be completed between 2026 and 2027. The remaining RM800,000 will be set aside for estimated placement expenses. The private placement is anticipated to be completed by the second half of this year.
As of June 30, CHGP reported total borrowings of RM324.7 million, and this private placement is aimed at bolstering its financial capacity to support its property development endeavors.