4 days ago
- Business
- New Straits Times
Kimlun to raise RM40.64mil from private placement
KUALA LUMPUR: Kimlun Corp Bhd has proposed a private placement to raise up to RM40.64 million to raise funds for working capital.
This includes property development expenditure, staff costs, as well as marketing and general operating expenses.
Kimlun, in its filing with Bursa Malaysia, said the proposal involves issuing up to 35.34 million new shares, about 10 per cent of the company's total issued shares.
The bulk of the proceeds of about RM30 million has been earmarked for property development expenditure in Johor. This includes funding for the Pinegate Residency Phase 1 project, which has a gross development value (GDV) of RM320 million.
The company also plans to use the funds for its Arden Residence and Pinegate Residency Phase 2 projects, with estimated GDVs of RM800 million and RM330 million respectively.
"The allocation of funding for the property development projects will be determined over the progress of the projects. Any shortfall required to fund these projects will be financed through the company's internally-generated funds and/or borrowings," it said.
Another RM7 million will be allocated for staff costs, and RM3 million for marketing and general operating expenses.
"This includes diesel, utilities and other office expenses," it said.
Kimlun remains cautiously optimistic on its outlook, which is supported by improved operating margins, active project execution and property launches in Johor as well as a strategic focus on the core construction sectors in Malaysia and Singapore.
For the three months ended March 31, 2025, the company recorded a revenue of RM460.0 million, being its highest quarterly revenue to-date, which signals positive momentum for the year ending December 31, 2025.
