KUALA LUMPUR (Sept 10): Ibraco Bhd has proposed to undertake a private placement of up to 10% of its issued shares to raise up to RM23.33 million to part finance an existing property development project.

A maximum number of 49.64 million new shares will be placed out to third party investors at an issue price to be determined later, the property developer said in a bourse filing.

However, based on an illustrative issue price of 47 sen per placement share, the exercise is expected to raise gross proceeds of up to RM23.33 million.

Of this, RM18 million will be used to part finance the construction of Renna Residence in Kuching, which was launched in June 2021 and is expected to be completed by May 2025.

The gross development cost of the 13-storey serviced apartment with a commercial podium is estimated to be RM100 million, the group said.

Another RM5.13 million of the placement proceeds will be used for working capital, Ibraco added.

The group expects the placement to be completed by the fourth quarter of 2021.

Ibraco’s share price closed unchanged at 53 sen today, valuing the group at RM263.09 million.

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