KLANG, May 27 — Construction and property developer, WCT Holdings Bhd, is looking to raise more than RM500 million over the next six months via the monetisation of its assets.
Chairman, Datuk Ahmad Sufian, said the monetisation is aimed at improving the company’s cashflow and more importantly, use the proceeds of sales to reduce the net gearing to 0.5 times from 0.8 currently.
However, he was tight-lipped, over providing more details on the process.
“We are still in discussions and planning. We will continue towards monetisation, because we have a lot of assets on our books and it is the right time to do so,” he told a media briefing after the company’s annual general meeting here, today.
WCT Holdings Bhd’s pre-tax profit fell to RM25.19 million in the first quarter (Q1) ended March 31, 2016 from RM42.75 million in the same period last year.
Revenue, however, increased to RM484.96 million from RM351.62 million.
Meanwhile, WCT Holdings’ Head of Corporate and Finance, Chong Kian Fah said for this year the company is aiming for a RM10 billion construction tender book, of which RM5 billion has been submitted, while the another RM5 billion is under preparation.
As at March 31, 2016, WCT had an outstanding construction order book of RM4.4 billion as well as unbilled property sales of RM551 million.