PHB (4464): PEGASUS HEIGHTS BHD plans private placement to raise up to RM80m
KUALA LUMPUR (Dec 18): Loss-making Pegasus Heights Bhd plans to raise up to RM80.31 million — a quarter of its current market capitalisation of RM316.81 million — through a private placement of up to 2.92 billion shares or 20% of its total issued share.
The placement is estimated to raise between RM58.08 million and RM80.32 million, Pegasus said in a filing with Bursa Malaysia.
The group plans to use RM64.5 million of the gross proceeds under the maximum scenario to fund its working capital requirement.
It plans to spend another RM16 million for the upgrade and maintenance works of its 24-year-old Centerpoint Seremban Mall.
Pegasus said the issue price of the new shares, and the third party investors, will be decided at a later date.
For illustration purposes, the indicative price of the placement shares is assumed at 2.75 sen per share, a discount of 8.94% to the group’s five-day volume-weighted average market price of 3.02 sen.
Pegasus’ business include investment property, project management consulting, investment holding, trading of home appliances, and food and beverages business related activities.
For the nine-month period ended Sept 30, 2020, the group reported a net loss of RM6 million, compared with a net loss of RM10.45 million a year earlier. Revenue rose to RM49.19 million from RM6.67 million.
The improved revenue was due mainly to an increase in revenue for the trading segment to RM38.99 million, from RM8.31 million.
There was also contributions from the project management consultant, investment holding and others segments, amounting to RM4.91 million and RM1.08 million respectively.
Barring any unforeseen circumstances and subject to all required approvals being obtained, the group expects the cash call exercise to be completed by the first quarter of 2021.
Shares of Pegasus closed unchanged at three sen, after 12.49 million shares were traded.