Crest Builder plans private placement to raise RM24.3m for debt repayment, working capital

• The placement of up to 48.63 million shares to third-party independent investors is expected to be completed by the second quarter of 2025, according to the group in a filing with Bursa Malaysia.

KUALA LUMPUR (March 21): Crest Builder Holdings Bhd (KL:CRESBLD) has proposed a private placement of up to 30% of its share base to raise RM24.3 million to pay for borrowings and purchase building materials.

Of the proceeds, RM19.44 million is earmarked for partial repayment of a revolving credit facility, followed by RM3.93 million to purchase building materials for the construction of the Kiaramas project and Desa ParkCity project.

At the end of December 2024, Crest Builder’s total borrowings amounted to RM573.29 million against cash balances of RM80.98 million.

The placement of up to 48.63 million shares to third-party independent investors is expected to be completed by the second quarter of 2025, according to the group in a filing with Bursa Malaysia.

The proceeds of RM24.3 million are based on an indicative price of 50 sen per share, which Crest Builder said is a 9.5% discount to the five-day volume-weighted average price of its shares up to March 20 of 55.25 sen.

The group's largest shareholder is SC Yong Holdings Sdn Bhd, a private entity owned by the Yong family, with a 43.23% interest. Yong Shang Ming is currently the managing director of Crest Builder.

Shares of Crest Builder were last traded at 57 sen, valuing the group at RM100.84 million. The counter has gained over 17.5% in the past year.

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