PETALING JAYA: Tropicana Corp Bhd has proposed to undertake a private placement to raise up to RM120.13mil to finance its property development projects and as working capital for existing shopping mall and hotels.

       The property developer said the proposed exercise would entail the issuance of up to 10% of the company’s existing issued shares (excluding treasury shares) to third-party investors at a price to be determined later.

       In filing with Bursa Malaysia, Tropicana said that based on an illustrative price of 83 sen per placement share, the gross proceeds from the proposed private placement were about RM120.13mil.

       Of the proceeds, RM81.5mil would be channelled to fund existing property development projects, while RM24.5mil would be for working capital for existing shopping mall and hotels; and RM11.46mil for administrative and operating expenses.

       The exercise is expected to be completed within six months upon approval from Bursa Securities.