KUALA LUMPUR, May 28 (Bernama) -- Damansara Realty Bhd (DBhd), a property developer and integrated facilities management group, plans to raise up to RM15.9 million in a private placement to support its business expansion and revival of its bauxite mining activity.
The private placement of up to 10 per cent of DBhd’s share capital involves the issuance of up to 31.8 million new shares, it said in a statement today.
DBhd has appointed M&A Securities Sdn Bhd as the adviser and placement agent for the proposed private placement exercise, which is expected to be completed by June 2019.
The bulk of the capital of over RM12.8 million raised will help finance its Integrated Facilities Management (IFM) segment expansion, including international parking management business in the Philippines.
DBhd currently has a cumulative tender book value amounting to RM653.67 million from various IFM project bids.
The balance of the funds raised, DBhd said, will go towards working capital and environmental impact assessment expenses to recommence its bauxite mining activity under its subsidiary, Damansara Realty Pahang Sdn Bhd (DRP).
This follows the lifting of the moratorium on bauxite by the Ministry of Water, Land and Natural Resources in March this year.
"This private placement will provide us with the additional resources to meaningfully advance our strategic plans to enhance the long-term growth of the company and value for our shareholders.
“With our sustained profitability streak, we believe the timing is right for us to recommence bauxite mining. We’re now in a strong position to realise the potential of our bauxite reserves, which can be a viable income contributor to supplement our core businesses in the coming years,” said group managing director Brian Iskandar Zulkarim.
DRP has 202.34 hectares of bauxite-rich land in Beserah near Kuantan, with estimated reserves of more than five million metric tonnes.
The group is awaiting approval from the authorities to commence its bauxite mining activity.
“We will continue to observe all laws and regulations as we have always done and will submit the required EIA studies and any process as required by law or regulation prior to commencement,” Brian added.