KYM raises funds for buying land and raising working capital

KYM raises funds for buying land and raising working capital

KYM Holdings Bhd, which is on a fund-raising mode, will use the monies raised for expansion plans in Perak including increasing its ownership of land close to the multibillion infrastructure investment by Brazil’s Vale International SA.

Last week, KYM said it was planning to raise RM7.6mil via a share placement as well another RM14mil in debt.

Most of these monies will be used to fund expansion plans in Perak as well as for working capital,

Managing director Datuk Raymond Chong Thin Choy said that aside from its expansion plans, KYM will also use some of the money raised for working capital purposes.

He said KYM which is involved in property development will place out five million new ordinary shares representing 4.6% of the group’s issued and paid-up capital to some local investors.

This would be used mostly for working capital.

Another RM14mil will be raised via bank borrowings to fund its proposed acquisition of the remaining 40% stake it does not own in its subsidiary Harta Makmur Sdn Bhd.

Following this, the company’s total borrowings would rise from RM24.6mil as at Jan 31 to RM38.6mil, its proforma accounts to the stock exchange showed.

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