Ideal Sun City expects to raise up to RM21mil from placement

PETALING JAYA: Ideal Sun City Holdings Bhd expects to raise up to RM21.23mil from its proposed placement of up to 42.45 million new shares.

The company told Bursa Malaysia that based on an indicative issue price of 50 sen per share, it expected to raise gross proceeds of up to RM21.23mil, which it would use to purchase investment properties on Penang island.

Ideal Sun City said the 42.45 million new shares would be placed out to independent third parties to be identified later and that the placement would account for about 30% of its paid-up capital.

It proposed to purchase 46 units of commercial space known as Ideal CEO executive suites in Penang for RM18mil from Ideal Concept Intelligence Sdn Bhd. It also plans to buy four units of three-storey shop-offices in Penang for RM8mil from Ideal Capital Intelligence Sdn Bhd.

“The proposed acquisitions are related-party transactions,” it said, as the vendor for the 46 units of the commercial space are owned by Datuk Ooi Kee Liang, while the second purchase of the shophouses would be from Datin Phor Li Wei.

Both of them are directors and major shareholders of the company, collectively holding 30.51% equity interest.

Through its acquisitions, Ideal Sun City, which is predominantly involved in the provision of project management service for property development, will diversify 25% of its net assets into property investment holding.

It has also proposed to double its share capital to RM100mil comprising one billion shares.

The private placement would allow it to increase its shareholders’ funds as well as enlarge its asset base, the company said.

The placement will also allow the group to raise funds to finance the proposed acquisitions, while increasing its net asset base without incurring interest costs as compared to borrowings.

The company added that barring any unforeseen circumstances, the acquisitions would be made in the fourth quarter of 2014.

Ideal Sun City’s proposals are subject to approvals from Bursa Securities, its shareholders and the Penang state authority.

M&A Securities Sdn Bhd is the principal adviser for the proposals, while TA Securities Holdings Bhd has been appointed independent adviser. - The Star