Iconic Worldwide Berhad announced that its Rights Issue exercise, along free warrants undertaken by the Group was oversubscribed. The exercise comprises 1,124.7 million rights shares on the basis of 2 rights shares for every 1 existing Iconic Worldwide shares that come with 749.8 million free warrants on the basis of 2 warrants for every 3 rights shares subscribed. The valid acceptance and excess applications totalled 1,125.3 million rights shares, as 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 Securities Berhad on 25 April 2024. The proceeds from the exercise will be used to accelerate the Group’s expansion through the acquisition of a strategic land bank asset and working capital investments, besides improving its gearing level and financial position.
James Tan Cho Chia, Iconic Worldwide’s Managing Director, said: “The oversubscription stands as a significant vote of confidence in our company’s future trajectory and strategic direction. The acquisition of this land asset marks a pivotal step in expanding our property portfolio, and will enable us to capitalize 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.”
The company said of the RM95.6 million in gross proceeds raised, up to RM39.8 million or 41.6% of the proceeds will be utilised to acquire Goldenluck Development, which owns a parcel of freehold, vacant land measuring approximately 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.
Prominent landmarks in the vicinity include Pasar & Kompleks Makanan Taman Terubong Jaya, Pine Valley Business Centre, Goldhill Complex, EconSave Supermarket, Permata Sports Complex, Balai Bomba Dan Penyelamat Paya Terubong and the proposed Sunway Valley City by the Sunway Group. While Goldenluck’s land asset is currently zoned as hill land, the Group intends to apply to the Penang state authority to rezone it for the development of a residential development project.
As for the rest of the proceeds, 39.4% will be used for the repayment of bank borrowings, 17.4% for working capital and 1.6% for expenses related to this corporate exercise. This will improve the Group’s financial position and its ability to swiftly seize expansion opportunities as they arise in the future.
