news

Zecon gets shareholder nod for rights issue

KUALA LUMPUR (July 21): Zecon Bhd has received approval from its shareholders for its proposed rights issue to address its current funding requirements to meet its short-term obligations and liabilities, as well as strengthen its financial position.

The Sarawak-based construction and property firm had announced on Feb 28 that it was planning to raise between RM19.4 million and RM46.1 million via a renounceable rights issue of up to 576.4 million of irredeemable convertible preference shares (ICPS) at an issue price of 8 sen each and a conversion rate of 16 sen.

Under the corporate exercise, each shareholder who already owns one Zecon share will receive four ICPS shares.

In a statement today, Zecon said its shareholders unanimously passed the resolution at the extraordinary general meeting on July 17.

Proceeds from the rights issue will be spent on working capital, to repay bank borrowings and for listing expenses.

"The rights issue of the ICPS augurs well for the company as it would further stimulate cash flow which in turn would further boost Zecon's net profit," said Zecon.

Zecon saw its net profit jump 59.7% year-on-year (y-o-y) to RM9.15 million in its third financial quarter ended March 31, 2020, mainly contributed by the Hospital Kanak-Kanak Universiti Kebangsaan Malaysia and the Pan Borneo projects.

Revenue for the quarter was up 26.9% y-o-y to RM143.1 million. For the nine-month period, the group registered a net profit of RM43.18 million compared with a net loss of RM8.76 million a year ago.

At 11.46am, Zecon shares were up 0.5 sen or 0.96% at 52.5 sen, bringing a market capitalisation of RM75.66 million. A total of 83,600 shares were traded.

Stay safe. Keep updated on the latest news at www.EdgeProp.my 

Click here for more property stories.

Click here to see residential properties for sale in Sarawak.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. Glomac 2Q net profit surges 63% as construction activities resume
  2. IGB reverses losses in 3Q on higher contributions from business segments
  3. Health DG clarifies issue over viral photos of foreign workers with pink wristbands