Vestland plans RM60.4m private placement to fund construction projects

KUALA LUMPUR (Aug 4): Construction firm Vestland Bhd (KL:VLB) has proposed to raise up to RM60.44 million via a private placement of up to 10% of its enlarged share base to fund working capital for current as well as future projects.

It plans to issue as many as 94.43 million new shares to third-party investors to be identified at an issue price to be fixed, according to the builder’s bourse filing on Tuesday.

The estimated RM60.44 million proceeds to be raised are based on an illustrative price of 64 sen, a 9.04% discount to Vestland shares’ five-day volume-weighted average price of 70.36 sen up to Aug 3.

The company has earmarked RM35.65 million of proceeds for working capital for existing projects, while another RM23.77 million will be for future projects.

The firm’s existing projects consist of four projects, secured between Jan 16 and June 26 this year, with an aggregate contract value of RM802 million.

It noted it is currently tendering for a total of 15 contracts with a total value over RM3.4 billion. Results of the tendered contracts are expected to be known in the next three to 12 months.

Vestland has not undertaken any equity fund-raising exercises over the past 12 months.

The company expects the proposed private placement to be completed by the fourth quarter of 2026.

AmInvestment Bank Bhd has been appointed as the principal adviser and sole placement agent for the exercise.

Shares of Vestland ended 1.5 sen or 2.13% higher at 72 sen, valuing the company at RM679.9 million.

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