Naim rights issue raises RM118.7m gross proceeds

KUCHING : Naim Holdings Bhd has raised gross proceeds of about RM118.7 million from its rights issue.

The amount exceeded the targeted minimum gross proceeds of RM100 million to be raised from the corporate exercise.

Naim achieved 74.22 per cent subscription rate for the rights issue which closed on Jan 11. This comprised valid acceptance of 173,435,325 rights shares or 48.8 per cent and excess subscription of 90,363,997 rights shares or 25.42 per cent, the company said in a filing with Bursa Malaysia.

The rights shares are due for listing on Bursa on Jan 25.

The total number of rights shares, priced at 45 sen a piece, available for subscription is 355,416,000 units. The balance 25.78 per cent of the rights shares were not taken up. If fully taken up, the rights issue could raise up to RM159.9 million.

To achieve the minimum target of raising RM100 million, Naim’s major shareholders Datuk Amar Abdul Hamed Sepawi, Datuk Hasmi Hasnan and persons acting in concert (PACs) had undertaken to fully subscribe their respective entitlements amounting to some 142.24 million rights shares and an additional about 79.98 million shares not taken up by the entitled shareholders.

Abdul Hamed and Hasmi, who are Naim chairman and managing director respectively, and PACs collectively owned about 94.83 million or 40.02 per cent of the company issued capital before the proposed rights issue.

Naim will utilise the money raised from the rights issue to reduce the group bank borrowings which stood at RM545.4 million as at Dec 31, 2017, and to finance its three major property development projects. These projects are the Kuching Paragon at Jalan Batu Lintang, Bintulu Paragon and Bandar Baru Permyjaya in Miri.

The Kuching Paragon involves on-going development of ‘Sapphire On The Park’ condominium with gross development value (GDV) of about RM190 million.

The project comprises three towers, which would house a total of 427 units. The first 18-storey tower has been completed and occupation permit issued while the second 18-storey tower is more than 40 per cent completed. Construction works has started on the third tower which is expected to be ready in first quarter-2021.

Under the Bintulu Paragon, a proposed 34-storey condominium called “The Peak” is currently in advanced construction. With GDV of RM150 million, the condominium project is due to be completed in second quarter this year.

The on-going development in Bandar Baru Permyjaya involves Southlake project spanning 450 acres and with an estimated GDV of RM180 million. The project involves the construction of different types of residential units, which are currently in various stages of work progress.

Naim has plans to launch more affordable and medium-priced residential development with GDV of RM70 million in Southlake for scheduled completion in first quarter-2021.

The developer has sold more than 9,000 units of properties with estimated GDV of about RM2 billion in the Permyjaya flagship development. Another 660 acres of land there have yet to be developed.

Besides property development, Naim group is into construction business. Its major on-going project is a RM1.17 billion work package for Pan Borneo Highway project, which Naim is undertaking with joint venture partner Gamuda Bhd. – Alvin Tang