SP Setia Bhd is proposing a placement of up to 15 per cent of its issued and paid-up share capital to finance some of its
existing projects, future expansion plans as well as working capital requirements.

The proposed placement will involve the issuance of up to 152.52 million new shares, the company said in a filing to Bursa Malaysia today.

It said part of the proceeds would be used for existing projects such as the KL Eco City project, Setia City project in Setia Alam, Selangor, and Fulton Lane project in Melbourne, Australia.

'The future expansion plans include the proposal to develop and construct the 1National Institute of Health (1NIH) Complex in Setia Alam and to redevelop the 40.22 acres of government land along Jalan Bangsar,' it explained.

The company is looking at redeveloping the government land into an integrated mixed residential and commercial project where the government would have a 20 per cent share of the net profits from the redevelopment.

SP Setia is also proposing a bonus issue of its new shares on the basis of one bonus share, for every two SP Setia shares held, after the proposed placement.

The company is also proposing to increase its authorised share capital to RM2.25 billion, comprising three billion shares, from RM1.20 billion comprising 1.6 billion shares. - Bernama