Kuala lumpur: FBG Holdings Bhd, a turnkey contractor and property developer, has announced plans to launch a renounceable rights issue with warrants aimed at generating funds for its flagship Medi-City project. The company has outlined an issue price of 18.0 sen per rights share, which is projected to raise approximately RM100.1 million under the base case scenario.

According to BERNAMA News Agency, the rights issue exercise will see the issuance of up to 836.6 million new ordinary shares. This is structured on the basis of three rights shares for every four existing shares held by shareholders. Additionally, the plan includes the issuance of up to 278.9 million free detachable warrants, which will be available on the basis of one warrant for every three rights shares subscribed by the entitled shareholders.

Tan Sri Chan Kong Choy, the group executive chairman of FBG, stated that the funds raised will be pivotal in initiating the Medi-City project. He emphasized the project's vision to create a medical ecosystem that seamlessly integrates healthcare facilities with urban living. The primary allocation of the proceeds will be towards securing land for the project's development, which carries an estimated gross development value of RM2.0 billion.

FBG Holdings Bhd anticipates that, barring any unforeseen circumstances, the proposed rights issue with warrants will reach completion by the fourth quarter of 2025.