MALTON Bhd plans to undertake a private placement of up to 10% of its issued shares, aiming to raise RM19.47 million.

The placement will involve the issuance of shares at an illustrative price of 36.7 sen per share, reflecting a 9.83% discount to the five-day volume-weighted average price (VWAP) of RM0.407.

The proceeds will primarily be used for property development projects, including the River Park serviced apartments in Bangsar South and the Park Green project in Bukit Jalil City, with RM12 million allocated for these initiatives.

The company also plans to allocate RM7 million to partially repay term loans and bank overdrafts, which is expected to yield estimated annual interest savings of RM470,000.

Up to RM417,000 will be used to cover working capital requirements, while RM57,000 is set aside for professional and regulatory fees related to the placement exercise.

Malton is prioritising the reduction of gearing levels and financing costs while supporting the development of high-value projects.

Additionally, the company is exploring opportunities to expand its landbank through acquisitions, development rights, or joint ventures.

The private placement is expected to be completed by the first half of 2025, subject to regulatory approvals.

UOB Kay Hian Securities (M) Sdn Bhd is acting as the adviser and placement agent for this exercise. — TMR