KUALA LUMPUR: Magma Group Bhd has received green light from Bursa Malaysia for the listing of up to 1.0 billion new shares.
This is through the issuance of redeemable convertible notes (RCN), subjected to the approval of shareholders.
In a statement today, Magma said the RCN could raise up to RM100.0 million.
The company said proceeds from the issuance would strengthen Magma's balance sheet.
It plans to use the money raised to repay existing bank borrowings as well as for working capital.
Magma group managing director Datuk Seri Thomas Liang Chee Fong said the green light marks a significant step forward for Magma.
"This fundraising will allow us to streamline our operations, reduce financial burdens to further strengthening our position in the hospitality sector.
"We are also open to explore new business ventures and enhance our existing portfolio, setting the stage for sustainable growth," he added.
Magma said it remains dedicated to its core operations within the hospitality sector, focusing on maximising the potential of its flagship properties, including Impiana KLCC Hotel, Impiana Hotel Ipoh, ImpianaHotel Senai and WOLO Kuala Lumpur.
Magma said the fund raising through the issuance of RCN will play a crucial role in this strategy, reducing the financial burdens to enhance operational efficiency.
This could lead to improving occupancy rates, and boost average room rates (ARR) by capitalising on the expected increase in tourist arrivals and executing ongoing initiatives.
The efforts, supported by a strengthened balance sheet, aligns with the company's commitment to driving sustainable growth and delivering value to its stakeholders.