Iconic Worldwide raises RM95.6mil in oversubscribed rights issue

KUALA LUMPUR: Iconic Worldwide Bhd’s rights issue exercise and free warrants undertaken by the group have been oversubscribed.

The exercise involves 1.124 billion rights shares, with a ratio of two rights shares for every one existing Iconic Worldwide share. Additionally, it includes 749.8 million free warrants, with a ratio of two warrants for every three rights shares subscribed.

According to Iconic Worldwide, the valid acceptance and excess applications totalled 1.125 billion rights shares, as compared with the 1.124 billion made available for subscription.

The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia Securities Bhd on April 25.

Iconic Worldwide said the proceeds from the exercise will be used to accelerate its expansion through the acquisition of a strategic land bank asset and working capital investments, besides improving its gearing level and financial position.

Managing director James Tan Cho Chia said the oversubscription stands as a significant vote of confidence in our company’s future trajectory and strategic direction.

“The acquisition of this land asset marks a pivotal step in expanding our property portfolio and will enable us to capitalise on its potential. Through the rezoning and the submission of a new development plan, we aim to unlock the full value of this asset.

“With an improved balance sheet position and the financial firepower to fuel our growth, we are well-positioned to deliver greater value to our shareholders,” he said in a statement.

Of the RM95.6mil in gross proceeds raised, up to RM39.8mil or 41.6% of the proceeds will be utilised to acquire Goldenluck Development Sdn Bhd, which owns a parcel of freehold, vacant land measuring 15 acres.

Valued at RM45.7mil by Henry Butcher Malaysia (Penang) Sdn Bhd, Goldenluck’s land sits adjacent to a residential development known as Green Garden and is located along Jalan Paya Terubong in Paya Terubong, Penang Island.

As for the rest of the proceeds, 39.4% will be used for the repayment of bank borrowings, 17.4% for working capital and 1.6% for expenses related to this corporate exercise. This will make the group’s finances stronger and help it grab growth chances quickly in the future.