Chin Hin Group seeking to raise up to RM500m via perpetual MTN

• The perpetual MTN programme is not rated. AmInvestment Bank Bhd is the principal adviser, lead arranger, lead manager and facility agent for the perpetual MTN programme.

KUALA LUMPUR (Dec 7): Chin Hin Group Bhd has filed its establishment of a perpetual medium-term note (MTN), in a bid to raise up to RM500 million, with the Securities Commission Malaysia (SC).

In a bourse filing on Thursday, the group said proceeds raised from the issuance of the perpetual MTN shall be utilised for capital expenditures to finance acquisitions, refinance existing financing or borrowings or future financing, working capital, other general corporate purposes and defraying fees, as well as costs and expenses related to this programme.

The perpetual MTN programme is not rated. AmInvestment Bank Bhd is the principal adviser, lead arranger, lead manager and facility agent for the perpetual MTN programme.

“The perpetual MTN programme provides the company the flexibility to issue, from time to time, perpetual MTN, subject to the aggregate outstanding nominal value of the perpetual MTN not exceeding the perpetual MTN programme’s limit at any point in time,” it noted.

Meanwhile, it said the perpetual MTN programme is not subject to shareholders’ approval. Information and documents in relation to the programme have been lodged with the SC, pursuant to the SC Lodge and Launch (LOLA) Guidelines on Dec 6, 2023.

Last month, Chin Hin Group saw its net profit for the third quarter ended Sept 30, 2023 (3QFY2023) fall 29.38% to RM11.59 million from RM16.41 million a year ago, due to higher administrative expenses and finance cost. Quarterly revenue, however, increased 20.85% to RM505.29 million from RM418.12 million in 3QFY2022, mainly driven by the distribution of the building materials sector.

For the nine months ended Sept 30, the group’s net profit dropped 34.07% to RM53.5 million from RM81.16 million in the same period last year, although revenue rose 36.54% to RM1.53 billion from RM1.12 billion.

Chin Hin Group’s share price closed down seven sen or 1.97% to RM3.48, bringing the group a market capitalisation of RM6.16 billion.

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