Bintai Kinden gets approval for regularisation plan, confident measures will help exit PN17

• Bintai fell into the PN17 status after its external auditors flagged the company’s ability to stay as a going concern — an accounting parlance that casts doubt on an organisation’s resources and income to stay afloat — in the financial statements for the financial year ended March 2023.

KUALA LUMPUR (Jan 16): Bintai Kinden Corporation Bhd (KL:BINTAI) said it has secured the approval from Bursa Malaysia for a proposed plan to fix its finances and strengthen the engineering services firm.

The exchange regulator has also approved the listing of new shares and stock options to employees that allows the company to raise fresh capital, incentive key staff, and meet the listing requirements. If successful, the measures will help the company shake off the PN17 status, Bintai said in a statement.

“The approval of our proposed regularisation plan is a pivotal moment, as it allows us to move forward with a clear strategy for financial recovery and growth,” said Bintai managing director Datuk Tay Chor Han.

Bintai fell into the PN17 status after its external auditors flagged the company’s ability to stay as a going concern — an accounting parlance that casts doubt on an organisation’s resources and income to stay afloat — in the financial statements for the financial year ended March 2023.

Further, the auditors noted that the company’s shareholders’ equity slipped under the required 50% of share capital to 48.89% at the end of March 2024.

The company subsidiary, Optimal Property Management Sdn Bhd, defaulted on financing facilities totalling RM109 million from MBSB Bank Bhd, taken for the construction of a student campus accommodation.

To address its troubles, Bintai planned to issue 244.0 million new shares through a private placement, up to 146.4 million shares under a granting of options scheme, and additional shares amounting to 15% of the company’s issued shares through an employees’ share option scheme.

The private placement raised RM19.52 million that will be mainly used to repay borrowings and as working capital.

Bintai also plans to focus on the construction business to diversify its income stream, and will implement a share capital reduction to cancel up to RM160 million to lower its accumulated losses and improve its financial position.

“The company is confident that this milestone will serve as a stepping stone towards meeting the regulatory requirements for the PN17 upliftment, and securing its financial future,” Bintai added.

Inter-Pacific Securities is advising Bintai on the plan.

EdgeProp.my is currently on the lookout for writers and contributors to join our team. Please feel free to send your CV to [email protected] 

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!