Jiankun sees emergence of third substantial shareholder via private placement

• Tai Tean Seng acquired the 24.5 million new shares on Oct 6, the group said in a bourse filing on Tuesday (Oct 11).

KUALA LUMPUR (Oct 11): Another new substantial shareholder has emerged in Jiankun International Bhd after subscribing for shares representing a 7.7% stake in the real estate developer via a private placement.

Tai Tean Seng acquired the 24.5 million new shares on Oct 6, the group said in a bourse filing on Tuesday (Oct 11). Following this, the group’s total issued shares stands at 318.39 million shares. 

On Sept 30, Jiankun announced the emergence of two other substantial shareholders through the subscription of private placement shares. 

Teh Hooi Tyug subscribed to 25 million shares (7.85% stake) and Datuk Yong Chong Long subscribed to 24 million shares (7.53% stake) on Sept 29, the group said.

Tai, Teh and Yong have thus taken up a cumulative 73.5 million of the 98 million new shares available under the fundraising exercise.

The first tranche of 49 million placement shares was priced at 19.2 sen per share — a 15.5% discount over five-day volume-weighted average market price (VWAP), while the second tranche of 49 million shares was priced at a lower price of 18.5 sen per share, nearly 18% discount to the five-day VWAP.

Jiankun has said that it intends to utilise the bulk of the proceeds raised from the private placement to fund the development of its One Le Tower project.

“The funds raised will be used towards, among others, payments to contractors, suppliers, consultants, material costs, earthwork, piling works, site clearing, building and external works, staff costs, as well as payment to the relevant authorities,” it said in July.

The real estate developer said the project was 30% completed but was halted in December 2020, due to operational disruptions caused by the adverse effects of Covid-19.

“Subsequently, the group was appointed to complete the remainder of the project,” it said, adding that it expects to complete the project by the fourth quarter of 2023.

Shares in Jiankun ended half a sen or 2.13% higher at 24 sen on Tuesday, giving the group a market capitalisation of RM69.06 million.