Magma Group Berhad announced that Bursa Malaysia Securities Berhad had given green light for the listing and quotation of up to 1.0 billion new Magma shares via the issuance of Redeemable Convertible Notes, subjected to the approval of shareholders.

The RCN issuance exercise could potentially raise up to RM100 million upon completion of the exercise for the group.

The group saiid it will use the proceeds to strengthen its balance sheet by repaying existing bank borrowings, reflecting the Company's commitment to maintaining financial robustness and pursuing strategic growth initiatives. The balance will be used to towards working capital and covering the expenses related to the issuance of the RCN.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad, commented, "Receiving the green light for our RCN issuance marks a significant step forward for Magma. This fundraising will allow us to streamline our operations, reduce financial burdens to further strengthening our position in the hospitality sector. We are also open to explore new business ventures and enhance our existing portfolio, setting the stage for sustainable growth."

As Magma Group Berhad moves forward, the company said it remains dedicated to its core operations within the hospitality sector, focusing on maximising the potential of its flagship properties, including Impiana KLCC Hotel, Impiana Hotel Ipoh, Impiana Hotel Senai, and WOLO Kuala Lumpur.

The fund raising through the issuance of Redeemable Convertible Notes will play a crucial role in this strategy, reducing the financial burdens to enhance operational efficiency, thus could lead to improving occupancy rates, and boost Average Room Rates (ARR) by capitalising on the expected increase in tourist arrivals and executing ongoing initiatives. These efforts, supported by a strengthened balance sheet, align with Magma's commitment to driving sustainable growth and delivering value to its stakeholders.