MCT fixes placement price, will raise RM384mil

PETALING JAYA: Property developer MCT Consortium Bhd, which is undertaking a reverse takeover (RTO) of GW Plastics Holdings Bhd, has fixed an offer price of RM1.28 per new placement share post-bookbuilding exercise.

The issue price of RM1.28 per share will raise gross proceeds of RM384mil for the company. The exercise will see the vendors of the RTO, namely, Tan Sri Goh Ming Choon and Datuk Seri Tong Seech Wi, raising RM195mil.

Under the proposal, GW Plastics will be renamed as MCT Bhd today. The suspension on the counter will be lifted on Monday.

In its filing with Bursa Malaysia, GW Plastics said it would use RM167mil of the proceeds to develop investment properties. The remainder of the proceeds will be utilised to repay bank borrowings, and cover the cost of property development projects, among others.

The exercise saw Goh and Tong emerging as substantial shareholders in GW Plastics with 42.68% and 22.98%, respectively.

The company said yesterday that approximately two-thirds of the shares it had placed out had been fully taken up by anchor investors.

“The book-building process received strong endorsement from blue-chip investors, with approximately two-thirds of the book covered by anchor investors and the remaining approximately one-third of the book achieving a coverage of about 1.7 times,” said the company in a statement yesterday.

Under the RTO, GW Plastics acquired the entire stake in MCT Consortium from vendors Goh and Tong for RM1.2bil in cash consideration.

GW Plastics – a Practice Note 17 company – will undertake a regularisation plan that entails the offering of 172 million new shares each in GW Plastics to approved bumiputra investors; 128 million new shares to institutional and selected investors; 150 million new shares to institutional and selected investors under the vendors’ restricted offer for sale; and 7.5 million shares by the vendors to the shareholders of the company.

The book-building tranche has attracted interest from one of the largest property developers in the Asia-Pacific region, among others.

Together, the anchor investors took up 278 million shares, while one-third of the book-building exercise was 1.7 times covered.

In a statement, GW Plastics said the implied market capitalisation based on the RM1.28 placement price stood at RM1.71bil.

“The company will be ranked as one of the larger property players by market capitalisation amongst its listed peers,” it said.

In a statement, Goh, who will be redesignated as chief executive officer of MCT Bhd, said that the response from the investment community reflected confidence in MCT Consortium’s integrated business model and its focus on modular construction techniques, as well as the continuous pursuit of an efficient cost model.