Avillion, owned by late Daim’s son, plans RM11.5m placement to upgrade Port Dickson hotel

• Avillion is 21.8%-owned by Datuk Dani Abdul Daim, son of the late Tun Daim Zainuddin. After the new share placement, his stake will drop to 17.5%.

KUALA LUMPUR (May 16): Avillion Bhd (KL:AVI) plans to raise RM11.5 million through a private placement of 283 million new shares to refurbish one of its main hotels, Avillion Port Dickson. This plan requires shareholders’ approval.

Avillion is 21.8%-owned by Datuk Dani Abdul Daim, son of the late Tun Daim Zainuddin. After the new share placement, his stake will drop to 17.5%.

In its filing with Bursa Malaysia, the company said it plans to use RM4 million of the RM11.5 million raised from the new private placement to upgrade hotel rooms, restaurant, gym and pool, RM3.9 million for working capital and RM3 million for loan repayment.

The total cost for refurbishing Avillion Port Dickson is estimated at RM15 million, with the remaining RM11 million to be funded through internal funds or bank loans. Work is expected to begin in the third quarter of 2025 and take 24 months to complete.

The company’s total bank borrowings currently stand at RM76.5 million.

In the same filing, the company said it will also seek shareholders’ approval to reallocate RM3 million from its last private placement in 2021—originally meant for hotel upgrades and an eco-tourism park in Avillion Admiral Cove—for working capital and loan repayment purposes.

In 2021, Avillion raised RM22.7 million through a private placement at 12 sen per share. Due to Covid-19, RM5.5 million of the RM10 million originally meant for loan repayment and hotel upgrades was used for working capital instead. So far, RM2.6 million has been spent on refurbishing the ballroom, function areas and facilities at Avillion Hotel Port Dickson. As of April 2025, RM3 million remains unspent.

Avillion said it has cancelled the eco-tourism park project at Avillion Admiral Cove, which hasn’t kicked off. Instead, it will focus on upgrading rooms, improving facilities and maintaining Avillion Hotel Port Dickson to stay competitive.

It said it remains committed to improving its assets but will proceed more slowly and cautiously, in line with the pace of market recovery. These upgrades will be funded through bank loans or joint ventures.

Avillion closed up 11.11% to five sen on Friday, giving it a market capitalisation of RM56.7 million. Year to date, the stock is up 11.11%.

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