Jiankun proposes private placement to raise RM5.94m

PETALING JAYA: Jiankun International Bhd has proposed to undertake a private placement of up to 10% of its issued shares to raise gross proceeds of up to RM5.94 million.
Jiankun group is principally involved in property development and construction, project management and advisory, and investment holding. At present, it is implementing the development of its two on-going residential projects, which were launched in the first quarter of 2017.
Proceeds from the private placement are intended to be utilised for working capital and/ or future business projects.
As the future business projects may cost a substantial amount at the early stage, the proceeds may allow the group to capitalise on investment opportunities from such business projects as and when it arises, which in turn may generate positive returns to the group in the future.
"At this juncture, the business projects have not been determined, although the group is in the midst of exploring such business opportunities via joint venture with landowner(s)," Jiankun said.
After due consideration of the various methods of fund raising, the board is of the view that the proposed private placement is the most appropriate avenue of fund raising as it enables the company to raise additional funds without incurring interest costs as compared to conventional bank borrowings.
The exercise also provides the company an expeditious way of raising funds from the capital market as opposed to other forms of fund raising and increases the size and strength of the company's shareholders' funds.
The proposed private placement is expected to be completed by the first quarter of 2018.
Jiankun's share price gained 1.9% to close at 27.5 sen on Friday, with some 20,000 shares changing hands.