Only World Group plans to raise RM36.92 mil through private placement

PETALING JAYA: Only World Group Holdings Bhd (OWG) is looking to raise up to RM36.92 million by undertaking a private placement exercise, which will see the issuance of new shares equivalent up to 10% of its share capital.

In a filing with Bursa Malaysia, the group said the exercise entails the issuance of some 24.29 million shares at an indicative issue price of RM1.52 per share for placement to third party investors.

Approximately RM25 million or 67.7% of the proceeds will be deployed for business expansion over the course of two years, which entails the setting up of at least three new food service outlets and four new family attractions in Resort World Genting, Genting Highlands.

OWG will be channeling 30.11% of the proceeds amounting to RM11.12 million into working capital, while the remaining RM800,000 will be used to foot expenses arising from the placement exercise.

The exercise, which is expected to be conducted in one or more tranches within a period of six months, is slated for completion by the third quarter of 2017.

OWG shares remained unchanged at RM1.70 on Friday, giving it a market capitalisation of RM412.9 million.