What is the primary use for the RM1.11 billion rights issue funds?

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The primary allocation for Sunway Bhd's proposed RM1.11 billion rights issue is to reduce the group's borrowings.

Sunway Bhd is planning to raise up to RM1.11 billion through a renounceable rights issue of up to 1.11 billion new irredeemable convertible preference shares (ICPS) at RM1 each. The majority of the proceeds, estimated between RM600 million and RM732.5 million, are earmarked for the partial repayment of the group's existing borrowings, which stood at approximately RM10.26 billion as of March 31.
Funding for New and Expanded Hospitals

A portion of the funds will be dedicated to capital expenditure for healthcare facilities. Specifically, RM200 million is designated to partially finance the development of the new Sunway Medical Centre in Penang and to support the expansion of its existing hospital in Petaling Jaya.
Investment in Property Development and Investment

The rights issue also includes an allocation for the group's property ventures. An amount of RM179.2 million will be used to partially fund ongoing property development and property investment projects.
Expected Completion Timeline

Sunway anticipates that the rights issue proposal will be completed in the fourth quarter of the current year, subject to obtaining the necessary approvals from relevant authorities.

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What is the primary use for the RM1.11 billion rights issue funds?

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