a day ago
- Business
- Malaysian Reserve
ARK Resources proposes private placement to raise RM1.9m
ARK Resources Holdings Bhd has proposed a private placement of up to 9.05 million new shares, representing not more than 10% of its issued share capital, to independent investors at a price to be determined later.
Based on an indicative issue price of 21 sen per share, an 8.7% discount to its five-day volume-weighted average price of 23 sen, the exercise is expected to raise gross proceeds of about RM1.9 million.
The construction and property development company plans to allocate RM1.21 million of the proceeds to set up a new 7,000 sq ft corporate office in Bayan Lepas, Penang, which will also serve as a sales and marketing gallery for a planned high-rise residential project in the area.
Another RM595,000 will be used for working capital, mainly to hire new staff for the office, while RM100,000 will cover placement expenses.
M&A Securities Sdn Bhd has been appointed as the principal adviser and placement agent for the exercise, which is expected to be completed by the fourth quarter of 2025.
The group said the placement will allow it to raise funds quickly without incurring interest expenses and strengthen its capital base. — TMR
