news

Mah Sing to issue RM100m redeemable convertible sukuk for future investments and working capital

KUALA LUMPUR (Sept 24): Mah Sing Group Bhd intends to issue up to RM100 million unrated seven-year redeemable convertible sukuk murabahah to fund future investments and working capital requirements.

In a bourse filing, the group announced that the RM100 million sukuk issuance is part of its RM1 billion Islamic Medium Term Note (IMTN) programme which allows for multiple issuances of rated, unrated, secured and/or unsecured IMTNs. On March 13, it completed the first issuance of a secured and unrated sukuk murabahah of RM600 million.

Sukuk holders can convert their papers into Mah Sing shares at 75.5 sen at any time from the sukuk's issue date up to maturity. Mah Sing's share price closed at 68.5 sen yesterday.

For the RM100 million fresh capital to be raised, the group has earmarked RM95 million for future investments in its business. The balance RM5 million would be used for working capital requirements.

"In the event the group is unable to identify any suitable business investment(s) within the time frame stipulated above (or any extended time frame, if applicable), the proceeds allocated for future investments shall be transferred to the general working capital purposes of the group," said the property developer.

Assuming that all 132.45 million conversion shares are converted by sukuk holders, this would result in Mah Sing's share capital increasing to 2.56 billion shares, from 2.43 billion shares currently.

Get the latest news @ www.EdgeProp.my

Click here for more property stories

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. EPF posts RM19.29 billion in gross investment income for 1QFY21
  2. The invincible leader
  3. Q&A with Tan Sri Leong Hoy Kum