Iconic raises RM95.6mil through rights issue, plans for land purchase

Iconic Worldwide Bhd has received overwhelming support for its recent rights issue and free warrants, signaling a strong vote of confidence from investors. With 1.12 billion rights shares and 749.8 million free warrants oversubscribed, the company is set to embark on an ambitious expansion journey. Scheduled to be listed on the Main Market of Bursa Malaysia on April 25, these instruments will bolster Iconic’s financial position and pave the way for strategic initiatives.

Managing director James Tan Cho Chia emphasized the significance of this oversubscription, highlighting it as an affirmation of the company’s future trajectory. Iconic plans to utilize the proceeds to acquire a strategic land bank asset, a move seen as pivotal in expanding its property portfolio. This acquisition, valued at RM45.7 million by Henry Butcher Malaysia (Penang) Sdn Bhd, includes a 15-acre parcel of freehold land adjacent to the Green Garden residential development in Penang Island.

Tan outlined the company’s vision for the acquired land, aiming to unlock its full value through rezoning and the submission of a new development plan. This strategic approach aligns with Iconic’s goal of delivering greater value to shareholders while capitalizing on the potential of its assets.

Of the RM95.6 million gross proceeds raised, RM39.8 million will be allocated to acquiring Goldenluck Development Sdn Bhd. The remainder will be allocated for the repayment of bank borrowings, working capital, and expenses related to the exercise. This allocation strategy underscores Iconic’s commitment to strengthening its financial position while pursuing growth opportunities.