KUALA LUMPUR (Feb 8): SP Setia Bhd will raise some RM942.86 million from the placement of 320.7 million new shares in the property developer at RM2.94 each, the firm told Bursa Malaysia today.
According to SP Setia, it has fixed the issue price for the share placement which accounts for about 15% of the company's expanded issued base following the completion of the book-building exercise.
The firm said the exercise has "attracted demand from both domestic and foreign institutional investors”.
SP Setia said it intends to use proceeds from the share placement to partially finance the redevelopment of the Battersea Power Station in London and construction of the Qinzhou Industrial Park in China.
At RM2.94, the issue price is a discount of 6.87% to the five-day volume weighted average market price of RM3.1569 for S P Setia shares up to last Wednesday (February 6).
The issue price is also 5.16% lower than the stock's closing price RM3.10 on that day.
Trading of S P Setia shares has been suspended since 2.30pm yesterday to facilitate the book-building process for the share placement. The stock which was last traded at RM3.11 will resume trading at 10am today.