Tropicana’s placement oversubscribed

KUALA LUMPUR: Tropicana Corp Bhd’s private placement, which was fixed at RM1.78 per share, has been oversubscribed by 2.6 times.

Tropicana, previously known as Dijaya Corp Bhd, will issue 86.31 million new shares under the fund-raising exercise.

In a filing with Bursa Malaysia yesterday, the property developer said the placement share price of RM1.78 was at a 9.88% discount to the five-day volume weighted average market price of RM1.97 on May 28.

Group CEO Datuk Yau Kok Seng said: “We are encouraged by the success of this new share placement, as it will enable us to raise gross proceeds of RM153.6 million for the group.

“We will continue with our focus to unlock the value of our landbank, seek out opportunities with partners to accelerate growth, and implement de-gearing initiatives to further strengthen our balance sheet.”

Yau said the change of name to Tropicana was the beginning of the company’s re-branding exercise which aims to create a clear corporate identity for the group.

“Continued efforts to further institutionalise our shareholding base remains a crucial part as it serves to affirm the group’s positioning,” he added.

Dijaya, controlled by Tan Sri Danny Tan, was the first property developer to introduce resort-style living into residential property developments with the Tropicana Golf & Country Resort.

The group also unveiled its new logo — a Tropicana tree — and renamed its website to reflect its transformation, direction and projects.

“We will continue to focus on concepts for our portfolio of residential, office and retail developments and further expand the market reach of our group to its potential customers across the country and beyond,” said Tan.

He added that the group is optimistic that the new launches will contribute strongly to the group’s sales and earnings growth.

This article first appeared in The Edge Financial Daily, on May 30, 2013.

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