Iskandar Waterfront City's to raise RM65.9m

PETALING JAYA: Iskandar Waterfront City Bhd (IWCity) is planning a private placement to raise up to RM65.9 million, mainly used to pay sub-contractors, suppliers and professionals for its on-going projects.
In a stock exchnage filing yesterday, the property developer said the placement would entail the issuance of up to 66.97 million shares, representing up to 10% of its enlarged issued and paid-up share capital.
IWCity said the maximum proceed was based on an illustrative issue price of 98.42 sen per placement share, which represents the volume weighted average price of IWCity for five market days up to May 6.
IWCity proposes to allocate RM44.9 million or 68.12% of total proceeds as payment to sub-contractors, suppliers and professionals for on-going projects in relation to the Pengerang and Eastern Dispersal Link contracts.
Apart from that, IWCity also intends to allocate RM15.2 million for land related expenses, RM4.31 million for working capital, and RM1.5 million for estimated expenses for the corporate exercise.
Subsequent to the placement, Lim's shareholding would be diluted to 42.87%, while IWCity's gearing ratio would be lowered to 0.32 times.
The group expects to complete the corporate exercise by the third quarter of 2016.