Yong Tai gains as much as 32% following ICPS conversion announcement

KUALA LUMPUR (Dec 4): Yong Tai Bhd gained as much as 32% today to touch a 23-month high, after the group announced a conversion of its irredeemable convertible preference shares (ICPS).

At 3.07pm, the property developer was up 6.5 sen or 22% at 36 sen, after earlier rising as much as 32% to 39 sen, its highest since January 2019. A total of 685.6 million shares were exchanged.

The group's market capitalisation stood at RM369.8 million.

In a bourse filing today, Yong Tai said 89,300 shares will be listed on Dec 8 following the conversion, which will see its issued share capital rise to 1.04 billion shares or RM456.8 million.

The ICPS were previously issued as part of a corporate exercise which saw the entry of Hong Kong-listed Sino Haijing Holdings Ltd as a substantial shareholder of Yong Tai in August 2016.

Under the corporate exercise, Yong Tai issued new shares and ICPS to Sino Haijing in exchange for a RM280 million investment.

Sino Haijing's subsidiary Impression Culture Asia Ltd had subscribed for 200 million ICPS at an issue price of 80 sen per share, amounting to RM160 million.

Besides that, Yong Tai also announced a bonus issue of up to 20.05 million shares on the basis of one ICPS for every 10 Yong Tai shares held to reward its shareholders, as part of the same exercise.

Get the latest news @ www.EdgeProp.my

Click here for more property stories.