Kimlun Corp Proposes Private Placement to Raise RM40.64 Million in Working Capital

Strategic Insights -

Malaysian construction group Kimlun Corp has proposed a private placement to raise up to RM40.64 million in working capital. The funds will be allocated towards property development expenditure, staff costs, and marketing and general operating expenses. Specifically, the bulk of the proceeds, around RM30 million, will be earmarked for property development expenditure in Johor, including the Pinegate Residency Phase 1 project with a gross development value (GDV) of RM320 million. The company also plans to use the funds for its Arden Residence and Pinegate Residency Phase 2 projects, with estimated GDVs of RM800 million and RM330 million, respectively.

Key Takeaways:

  • Kimlun Corp plans to issue up to 35.34 million new shares, representing about 10% of the company's total issued shares, as part of a private placement to raise up to RM40.64 million in working capital.
  • The bulk of the proceeds, around RM30 million, will be allocated towards property development expenditure in Johor, primarily for the Pinegate Residency Phase 1 project with a GDV of RM320 million.
  • The company also plans to use the funds for the Arden Residence and Pinegate Residency Phase 2 projects, with estimated GDVs of RM800 million and RM330 million, respectively.
  • Kimlun Corp has earmarked RM7 million for staff costs and RM3 million for marketing and general operating expenses.
  • The company remains cautiously optimistic about its outlook, driven by improved operating margins, active project execution, and property launches in Johor, as well as a strategic focus on the core construction sectors in Malaysia and Singapore.
  • For the three months ended March 31, Kimlun Corp recorded a revenue of RM460.0 million, its highest quarterly revenue to-date, indicating positive momentum for 2025.

Statistics:

  • RM40.64 million (maximum amount to be raised in working capital)
  • RM30 million (allocated for property development expenditure in Johor)
  • RM320 million (gross development value of the Pinegate Residency Phase 1 project)
  • RM800 million (estimated GDV of the Arden Residence project)
  • RM330 million (estimated GDV of the Pinegate Residency Phase 2 project)
  • RM460.0 million (highest quarterly revenue recorded by the company for the three months ended March 31)
  • 35.34 million (number of new shares to be issued as part of the private placement)
  • 10% (percentage of total issued shares that will be issued under the private placement)
  • RM7 million (allocated for staff costs)
  • RM3 million (allocated for marketing and general operating expenses)

Sources:

  • Bursa Malaysia (Kimlun Corp's filing)