KUALA LUMPUR (July 11): Bina Puri Holdings Bhd plans to place out new shares — up to 10% of its enlarged issued share capital — to independent third-party investors to be identified later, to raise up to RM9.08 million, mainly to fund its existing property development and construction projects.

The placement will involve the issuance of up to 124.4 million shares at an issue price to be fixed later. The proceeds mentioned above are based on an indicative price of 7.3 sen per placement share.

Bina Puri said the placement shares will not be priced at more than 10% discount to the five-day volume weighted average market price of its shares immediately before the price fixing date.

There are two property projects Bina Puri plans to use the proceeds on: a Johor development involving 384 double-storey houses with an estimated gross development value (GDV) of RM229.5 million and one development involving 28 units of four-storey and five-storey shophouses in Kuching, Sarawak with a GDV of RM57 million.

The proceeds raised will also be used to finance four construction jobs: a hotel in Terengganu, a housing programme in Sabah to build 440 units of five-storey walk-up flats, building works for the Malaysian Embassy in Moscow, Russia, and upgrading works under the Pan-Borneo Highway in Sarawak.

The proposed placement is expected to be completed by the end of this year.

Bina Puri shares closed 0.5 sen or 6.67% higher at eight sen yesterday, bringing it a market capitalisation of RM61.06 million, after 16.15 million shares were traded.

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