KUALA LUMPUR (Aug 10): Property developer Axteria Group Bhd has proposed a private placement of up to 10% of its total number of issued share capital to raise RM11.3 million.

It is worth noting that Axteria, formerly Acoustech Bhd, had embarked on three rounds of private placement in the past three years, owing to the difficulty it faced in the property sector, raising RM8.5 million in 2021 and 2022 respectively, as well as RM26.7 million in February this year.

In the latest private placement exercise, the large bulk of the proceeds raised (RM9.2 million) will be used to fund the completion of its Asteria Melaka (Block C) construction and working capital. Some RM2 million is earmarked for working capital.

Axteria expects the construction of Axteria Melaka to be completed by January 2025.

The private placement exercise will entail the issuance of up to 71.68 million new shares, bringing the group’s enlarged share capital to 788.44 million shares. It may be implemented in tranches within six months from the date of approval of Bursa Securities.

The placement shares will be issued to independent third-party investors to be identified at a later date, the group said in a bourse filing on Thursday (Aug 10).

For illustrative purposes, the indicative issue price of 15.8 sen per placement share represents approximately a 10% discount to its five-day volume weighted average market price up to the latest practicable date (Aug 3) of 17.54 sen.

In terms of finances, the group booked a net profit of RM958,000 for the first quarter ended March 31, 2023, on the back of revenue of RM17.35 million. For the corresponding quarter a year before, it only recorded a net profit of RM71,000, with revenue of RM7.29 million.

Shares in Axteria remained unchanged at 17 sen on Thursday, valuing the property developer at RM121.87 million.