Gabungan AQRS fixes issue price for placement shares at RM1.35

KUALA LUMPUR (July 26): Gabungan AQRS Bhd has fixed the issue price for the placement of 19.48 million shares at RM1.35 per share.

In a filing with Bursa Malaysia, the construction and property development group said the issue price represents a discount of about 5.59% to the five-day volume weighted average market price up to July 24 of RM1.43 per share.

According to bankers, the placement was covered about three times with bids mostly coming from institutional investors.

On June 30, Gabungan AQRS announced the acquisition of the entire stake in Monolight IBS Building System Sdn Bhd for RM26 million along with the proposed private placement.

After the group announced the two proposals, its share price fell 5.71% to RM1.32 on July 11.

Gabungan AQRS said that the private placement was to raise funds to pay for its working capital requirements.

It said the proceeds earmarked for working capital will enable the group to part finance the various progression stages of the group’s ongoing construction projects, including the Sungai Besi-Ulu Klang Highway, and Pusat Pentadbiran Sultan Ahmad Shah, Kuala Kuantan.

This article first appeared in The Edge Financial Daily, on July 26, 2017.

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