Iconic Worldwide’s rights issue oversubscribed, raises RM95.6 mil
KUALA LUMPUR (April 19): Iconic Worldwide Bhd has raised a total of RM95.6 million through its rights issue exercise with free warrants, which was oversubscribed.
At the close of acceptance, the group received valid acceptances and excess applications, totalling 1.125 billion right shares, surpassing the total number of rights shares available for subscription.
The exercise had comprised 1.124 billion rights shares available for subscription on the basis of two rights shares for every one existing Iconic Worldwide share, accompanied by 749.8 million free warrants on the basis of two warrants for every three rights shares subscribed.
The group, which is primarily in the business of tourism, property development and the manufacturing of personal protective equipment, announced that up to RM39.8 million, or 41.6% of the total gross proceeds raised, will be utilised to acquire Goldenluck Development Sdn Bhd, which owns a parcel of freehold, vacant land, measuring approximately 15 acres in Paya Terubong in the island of Penang.
While the land asset is currently zoned as hill land, Iconic Worldwide intends to apply to the Penang state authority to rezone it for the development of a residential project.
The remainder of the proceeds, 39.4%, will be allocated for the repayment of bank borrowings, 17.4% for working capital, and 1.6% for expenses related to this corporate exercise.
The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia Securities Bhd on April 25.
In a statement, Iconic Worldwide managing director James Tan Cho Chia said the oversubscription reflects strong confidence in the company’s future direction.
He emphasised that the acquisition of the land asset is a key move in expanding their property portfolio and unlocking its full potential through rezoning and new development plans.
“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,” Tan added.
Shares in Iconic Worldwide settled unchanged at 10 sen on Friday, valuing the group at RM168.71 million.