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Wednesday, February 6, 2013

Mah Sing upbeat on RM3b in sales


KUALA LUMPUR: Mah Sing Group Bhd is optimistic of registering as much as RM3 billion in sales this year, an increase of 20 per cent from last year.

Its managing director and group chief executive, Tan Sri Leong Hoy Kum, said greater Kuala Lumpur and Klang Valley will make up the bulk of this year's sales target at 62 per cent. Johor Baru is expected to contribute 20 per cent, Penang 13 per cent and the balance from Sabah at five per cent.

"This year's property sales are expected to be boosted by the launch of six new projects on top of our existing projects, namely Southville City, M Residence 2 in the Klang Valley, Ferringhi Residence in Penang, Mah Sing iParc@Tanjung Pelepas and The Meridin@Medini, which are located in Iskandar Malaysia, and Sutera Avenue in Kota Kinabalu," he told reporters after the company's extraordinary general meeting (EGM) at its headquarters yesterday.

The total gross development value for all six new projects is RM7.4 billion

Leong said the firm may buy new lands or co-develop them with other parties, be it government or private bodies, as soon as the general election is over.

"We may even go on a buying spree to increase our landbank."

During the EGM, Mah Sing shareholders voted to approve a renounceable rights issue with free warrants, followed by a one-for-every-five share bonus issue for shareholders.

The fund-raising exercise is expected to raise up to RM400 million, which will part finance their property development expenditure, future land acquisitions and general working capital requirements.

Leong said the exercise is part of the group's prudent management of capital structure to maintain a healthy and optimum capital base.

The entitlement date for the rights issue with free warrants is expected to take place by the end of this month, with the closing date for acceptance of rights and excess applications by mid-March.

The new rights shares and warrants are expected to be listed by end of March. While interest is expected to be strong for the rights issue with free warrants, Mayang Teratai Sdn Bhd, a major shareholder of Mah Sing, is planning to take up to 50 per cent of the rights issue.

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