OCR Group raises RM46.8 million in Rights Issue with Warrants

2-for-3 renounceable rights issue with free detachable warrants achieves 101.1% subscription rate
Proceeds to fund development of key projects, strengthen financial position, and increase working capital
Free detachable warrants exercisable for 3 years with potential to raise up to RM46.8 million in future proceeds

Selangor, Malaysia, 30 September 2024 – Integrated property developer OCR Group Berhad (OCR, the Group, Bloomberg: ONC MK) today announced that the renounceable Rights Issue with free Warrants achieved a subscription rate of 101.1%, raising gross proceeds of RM46.8 million.

The rights issue involved the issuance of up to 1.3 billion new ordinary shares at an issue price of RM0.035 per rights share, on the basis of 2 Rights Shares together with 2 free detachable warrants for every 3 existing OCR shares held.

The Rights Issue received total applications for 1.35 billion Rights Shares worth RM47.3 million, underscoring investor confidence in OCR’s growth strategy.

Mr Billy Ong Kah Hoe, Managing Director of OCR Group Berhad, said:

The oversubscription of our rights issue underscores the confidence our investors have in our growth potential. The capital raised will accelerate the development of our project pipeline of over RM2.0 billion, including key projects like Kyra in Shah Alam, OCR Templer at Rawang, and Vertex Kuantan City Centre.

At an issue price of RM0.035 per rights share, the Rights Issue raised approximately RM46.8 million in proceeds.

The majority 80.3% of proceeds will be utilised to accelerate the development of key projects, including Kyra in Shah Alam, OCR Templer at Rawang, and Vertex Kuantan City Centre in Pahang, with a combined estimated gross development value (GDV) of over RM2.0 billion. Of the remaining proceeds, 10.7% will be used to strengthen OCR’s financial position and enhance its balance sheet by repaying RM5.0 million of borrowings. 9.0% will be allocated mainly (6.4%) for working capital requirements, with the balance (2.6%) to cover the estimated expenses for the Corporate Exercises.

The Warrants are exercisable anytime within a period of 3 years commencing from and including the date of issue of the Warrants. Upon full exercise of the warrants, the Group will raise additional gross proceeds of up to RM46.8 million, which will be used to finance future working capital requirements, such as staff costs and other operating and administrative expenses.

The Rights Shares and Warrants are expected to be listed on the Main Market of Bursa Securities on 7 October 2024.