Bina Puri to raise up to RM18.12m via Megapower IPO
Tuesday, June 14 2016 - 01:42 AM WIB
Malaysia?s Bina Puri Holdings Bhd is expected to raise up to RM18.12 million (about US$4.34 million) from the proposed listing of its 80 percent-owned indirect subsidiary, PT Megapower Makmur on the Indonesia Stock Exchange.
Megapower has proposed to undertake an initial public offering (IPO) involving a public issue of 300 million new shares representing 30.93 percent of its issued and paid-up capital, the company said in a statement to the Malaysian bourse on Monday.
The indicative issue price will range between RM0.0453 and RM0.0604 per share.
Bina Puri said proceeds from the listing would be utilized for working capital and repayment of loan from its subsidiary, Bina Puri Power Sdn Bhd (BP Power).
?Proceeds for working capital will be utilized to finance the day-to-day operations of the existing business of Megapower such as employee costs, general administrative and operating expenses,? the company said.
Bina Puri explained the planned listing would allow Megapower to gain direct access to the capital market in Indonesia for cost-effective capital raising in the future as well as to gain recognition and corporate stature.
The listing would also give an opportunity for investors to participate in Megapower?s continuing growth by way of equity participation, it added.
Editing by Reiner Simanjuntak