NCT Alliance plans to raise RM48m via private placement to fund property development activities

• NCT said the proposed private placement entails the issuance of up to 120.93 million new shares, representing 10% of total issued shares, to person(s) to be identified at a later date.

KUALA LUMPUR (Oct 7): Property developer NCT Alliance Bhd has proposed a private placement to raise up to RM48.37 million to fund property development activities and for working capital.

In a bourse filing on Friday, NCT said the proposed private placement entails the issuance of up to 120.93 million new shares, representing 10% of total issued shares, to person(s) to be identified at a later date.

As on Sept 14, NCT's issued share capital was RM269.52 million comprising 1.06 billion shares.

Based on an issue price of 40 sen per placement share, the proposed corporate exercise is expected to raise gross proceeds between RM42.59 million and RM48.37 million. The issue price of 40 sen represents a 1.7% discount to the five-day volume weighted average price of NCT shares of 40.68 sen on Sept 14.

Barring any unforeseen circumstances, the proposed private placement is expected to be completed by the first half of 2023.

AmInvestment Bank Bhd has been appointed to act as the principal adviser and placement agent to NCT for the exercise.

NCT had previously undertaken a private placement of 150 million new shares, which was completed on Dec 8, 2021, and raised RM69.06 million that was primarily utilised to fund the development of the company’s mixed development project in Genting Highlands, Pahang. The proceeds raised from the private placement have been fully utilised.

NCT shares closed down one sen or 2.6% at 38 sen on Friday, bringing it a market capitalisation of RM402.52 million.