KUALA LUMPUR (Sept 14): Menang Corp (M) Bhd said today it has scrapped its proposed private placement exercise to raise RM21.4 million for the group’s debt repayment.
“On behalf of the board, Malacca Securities wishes to announce that, after due and careful consideration, the board has decided to raise the requisite funding to repay its borrowings through other means and abort the proposed private placement,” it said in a bourse filing today.
It was reported in April this year that the group would be placing out 48.08 million shares or 10% of its share capital to third-party investors at an indicative price of 44.5 sen.
Menang Corp — which is engaged in property development, letting out of properties and the provision of management services — said it plans to use RM21.3 million of the proceeds to reduce borrowings totalling RM557.18 million as of Dec 31, 2020.
Shares of Menang Corp were down 1.5 sen or 2.91% to settle at 50 sen as at noon break today, translating into a market capitalisation of RM238.09 million.
The stock has fallen 10.71% year-to-date from 56 sen apiece.