Having already raised RM84 million, TWL plans another cash call

• The cash call is expected to raise up to RM120.2 million, of which the company will allocate RM82.13 million to fund the construction of the property projects.

KUALA LUMPUR (Aug 16): TWL Holdings Bhd (previously known as Tiger Synergy Bhd) has proposed a renounceable rights issue of five-year redeemable convertible unsecured loan stocks (RCULS) that come with free detachable warrants.

The cash call is expected to raise up to RM120.2 million, of which the company will allocate RM82.13 million to fund the construction of the property projects. Meanwhile, it has earmarked RM36.85 million to buy land, said TWL in its filing with Bursa Malaysia.

Loss-making TWL intends to build affordable housing under the Rumah Selangorku scheme on the proposed land to be acquired.

It is worth noting that this is the third fund raising exercise that TWL is undertaking within a year to finance property projects.

In October last year, the company had a rights issue to raise RM44.06 million — involving the issuance of 1.1 billion new shares and 1.1 billion warrants. The bulk of the money raised was to fund its property projects (RM30 million) while remaining of the proceeds went towards repayment of borrowings (RM11.17 million).

TWL completed a private placement of 771 million new shares in April this year that raised RM40.46 million, mainly to fund the construction of the Sentul project.

On the latest proposal, the RCULS will be issued at 100% of their nominal value at three sen each, on the basis of seven RCULS, together with two warrants for every 10 existing shares, its bourse filing showed, adding that the proposed rights issue involved the issuance of up to 4 billion RCULS together with 1.14 billion warrants.

It also noted that the RCULS comes with a fixed coupon rate of 5% per annum.

“Any shortfall in the group’s funding requirement for the projects is expected to be met via internally-generated funds and/or bank borrowings and/or future fundraising exercises to be undertaken (if required),” it noted. 

The projects have a total estimated gross development value (GDV) of RM624.1 million, while the gross development cost (GDC) is RM523.5 million

“Subject to all relevant approvals being obtained and the availability of funding, the projects are expected to commence in the first quarter of 2023 and be completed in the fourth quarter of 2028,” it added. 

TWL shares closed unchanged at six sen on Tuesday (Aug 16), with a market capitalisation of RM224 million.