Bina Puri shares down on private placement plan

• Bina Puri said it plans to issue up to 30% of its share base of 3.37 billion shares to third-party investors to be identified later, at an issue price to be determined later.

KUALA LUMPUR (Dec 26): Bina Puri Holdings Bhd, whose share price more than doubled this year, fell as much as 15.79% to a low of eight sen in morning trade on Tuesday (Dec 26), following its proposal to raise up to RM75.62 million through a private placement after undertaking a consolidation of every five shares into one share.

Shares of the loss-making civil and building construction firm opened at nine sen, half a sen lower from its closing price last Friday.

At 11.37am, it was the second most active stock on Bursa Malaysia on Tuesday, with a trading volume of 57.74 million shares, surpassing its 200-day average volume of 7.96 million shares, and over eight times the seven million shares that were transacted last Friday.

Bina Puri said it plans to issue up to 30% of its share base of 3.37 billion shares to third-party investors to be identified later, at an issue price to be determined later.

From the total proceeds of RM75.62 million, the group said RM29 million will be earmarked for repayment of bank borrowings, another RM21.82 million will be set aside for its property development projects, RM14.5 million will be allocated for repayment of outstanding payables, RM8 million will be for construction projects and the remaining RM2.3 million will for defraying the exercise’s estimated expenses.

The latest proposed private placement marks the third fundraising exercise that the group has undertaken in the past 12 months. In December last year, Bina Puri raised RM16.78 million and another RM45.25 million in April this year, mainly used to repay its bank borrowings and property development projects.

The latest proposed exercise is expected to be completed in the third quarter of 2024.

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