KUALA LUMPUR (June 22): JAG Bhd has proposed a private placement to raise up to RM14.41 million to fund its property development project in Klang.

In a filing with Bursa Malaysia yesterday, Jag said the private placement entails an issuance of up to 192.18 million new shares, representing up to about 10% of its enlarged issued and paid-up share capital.

Based on the indicative issue price of 7.50 sen per placement share, which would raise gross proceeds up to RM14.41 million, Jag said RM13.56 million will be used to fund the property development and RM450,000 will be used for working capital, while RM400,000 for the placement expenses.

The property development will include a mix-development project with a total gross development value (GDV) of RM220.09 million, the waste management solutions provider added.

The property project will consist of service apartments, shop offices and car park podiums.

On Jan 28, 2016, Jag's wholly-owned subsidiary JAG Land Sdn Bhd entered into a sale and purchase agreement with Chewway Heavy Machinery Sdn Bhd to purchase a parcel of freehold land in Klang, measuring 13,489.5 square meters (3.3 acres) for RM9.87 million.

The company has obtained the housing licence and advertising and sales permit from the Housing and Local Government Ministry on June 13 this year.

Subject to relevant approvals, the proposed private placement is expected to be completed by the fourth quarter of 2018.

Jag shares traded unchanged at 8 sen yesterday, giving it a market capitalisation of RM110.15 million. — theedgemarkets.com

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