KUALA LUMPUR (Sept 25): Sanichi Technology Bhd plans to raise RM31.91 million — 43% of its current market capitalisation of RM75.17 million — through a private placement mainly to fund its maiden property development project in Melaka.

In a bourse filing, the property developer said it will be placing up to 524.82 million shares, or 30% of its issued capital, to independent third-party investors to be identified later and at an issue price to be determined later.

For illustration purposes, the indicative issue price is assumed at 6.08 sen, which is a discount of 9.93% to the five-day volume-weighted average market price of 6.75 sen.

Based on the indicative price, Sanichi said the exercise would result in the group raising up to RM31.91 million. Of the total proceeds, the group has earmarked RM30.71 million for its Melaka property development project, Marina Point.

Marina Point is the group's maiden property development since the precision moulds and tooling manufacturer diversified into property development in June 2014.

The development, comprising serviced apartments and a shopping mall, will have a gross development value of RM180 million.

The project has achieved a completion rate of 60% and is expected to be fully completed by the second quarter of 2021.

Sanichi's share price closed unchanged at six sen, after some 8.63 million shares were done.