Yong Tai Bhd has announced the issuance of 1.5 million redeemable convertible preference shares (RCPS) with a total principal value of RM1.5 million as part of its ongoing capital-raising initiative.
In a Bursa Malaysia filing on Feb 20, the company confirmed that the subscriber agreed to take up the RCPS in three equal sub-tranches under Tranche 1 at an issue price of RM1 per share. Acceptance of the subscription was received on Feb 19, following the initial subscription on Feb 16. The parties have set a targeted closing date for the RCPS issuance on Feb 24.
This issuance forms part of Yong Tai’s broader plan to issue up to 180 million RCPS at RM1 each, providing the company with additional flexibility to fund ongoing operations and strategic initiatives.
Yong Tai’s shares closed unchanged at RM0.145, matching the previous day’s closing price. The counter opened at RM0.145 and traded within a narrow range of RM0.140 to RM0.145 throughout the session. Turnover remained low at 58,700 shares, significantly below its three-month average of 195,900 shares, reflecting a cautious market sentiment despite the announcement of the RCPS issuance.
The stock continues to trade below its 52-week high of RM0.240. Investors appear to be awaiting further updates on the group’s proposed RM160 million sale of the Courtyard by Marriott Melaka hotel to Southern Envoy Sdn Bhd, which is expected to serve as a key catalyst for re-rating the counter.
For property investors monitoring the Klang Valley, Yong Tai’s capital-raising activities underscore the importance of liquidity management and strategic asset transactions in property and hospitality groups. While the RCPS issuance primarily targets corporate funding, it indirectly signals ongoing activity in property development and management — factors that can affect broader market sentiment.
Developers with exposure in Kuala Lumpur and Selangor, particularly in growth corridors such as Bukit Jalil, Puchong, and the Subang area, often see strategic capital moves translate into enhanced delivery on industrial land in Selangor, commercial property in KL, and office space in Bukit Jalil. Similarly, liquidity and asset recycling initiatives can support redevelopment and expansion of industrial property in Subang area or acquisition of a factory in Puchong for operational scaling.
Market watchers are advised to track corporate fund-raising updates alongside township and industrial land developments, as these indicators often reflect underlying confidence and investment flows across Malaysia’s property sector.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Feb 26
Malaysia