KUALA LUMPUR: Vestland Bhd has proposed a private placement of up to 94.43 million new shares, representing up to 10% of its issued share capital, to raise gross proceeds of up to RM60.4mil for working capital.

In a filing with Bursa Malaysia, the construction company said the proceeds will mainly be used to fund existing and future construction projects, with RM35.65mil allocated for ongoing projects and RM23.77mil earmarked for future projects.

About RM1.02mil will be used to pay expenses related to the exercise.

The placement shares will be issued to third-party investors to be identified through a book-building exercise at an issue price to be determined later.

The issue price will be fixed at not more than a 10% discount to the five-day volume-weighted average market price immediately before the price-fixing date.

Based on an illustrative issue price of RM0.64 per share, the exercise is expected to raise RM60.4mil.

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