KUALA LUMPUR (Aug 10): Two property developers have proposed yet another round of private placement to fund their property projects.

Axteria Group Bhd told Bursa Malaysia on Thursday (August 10) that it had proposed a private placement of up to 10% of its total number of issued share capital to raise RM11.3 million.

It is worth noting that Axteria, formerly Acoustech Bhd, had embarked on three rounds of private placement in the past three years, owing to the difficulty it faced in the property sector, raising RM8.5 million in 2021 and 2022 respectively, as well as RM26.7 million in February this year.

In the latest private placement exercise, the large bulk of the proceeds raised (RM9.2 million) will be used to fund the completion of its Asteria Melaka (Block C) construction and working capital. Some RM2 million is earmarked for working capital.

The private placement exercise will entail the issuance of up to 71.68 million new shares, bringing the group’s enlarged share capital to 788.44 million shares. It may be implemented in tranches within six months from the date of approval of Bursa Securities.

Another property developer NCT Alliance Bhd, formerly Grand-Flo Bhd, is undertaking a private placement exercise of about 10% of its share base to raise some RM54.42 million, based on an illustrative price of 37 sen, mainly to fund its property development of the Grand Ion Majestic and Ion Vivace projects.

The company said almost all of it or RM53.9 million, will be allocated for investment opportunities to expand the group’s property development activities.

Some RM50 million and RM3.9 million would be earmarked for its mixed development project Grand Ion Majestic in Pahang and Ion Vivace in Batu Kawan, Penang, respectively.

In the past year, NCT had undertaken a private placement of 181 million new shares, which was completed on March 29, 2023, raising total proceeds of about RM58.3 million to fund the development of its mixed development project in Genting Highlands, Bentong, Pahang.

As at March 31, NCT estimated that it will require approximately RM477.6 million for its property development activities up to till 2026.