KUALA LUMPUR: Iconic Worldwide Bhd says its rights issue and free warrants have been oversubscribed.
The exercise comprises 1.12 billion rights shares on the basis of two rights shares for every one existing Iconic Worldwide shares that come with 749.8 million free warrants on the basis of two warrants for every three rights shares subscribed.
The valid acceptance and excess applications totalled 1,125.3 million rights shares, compared with the 1,124.7 million made available for subscription.
The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia on April 25.
According to the company, 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.
Iconic Worldwide managing director James Tan Cho Chia said the oversubscription stands as a significant vote of confidence in the company's future trajectory and strategic direction.
He added that the acquisition of the land marks a pivotal step in expanding the company's property portfolio, and will enable it 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 RM95.6 million in gross proceeds raised, up to RM39.8 million or 41.6 per cent 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 RM45.7 million 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 per cent will be used for the repayment of bank borrowings, 17.4 per cent for working capital and 1.6 per cent for expenses related to the exercise.
