GRP Limited Provides Detailed Update on Utilisation of Rights Issue Proceeds
GRP Limited Provides Detailed Update on Utilisation of Rights Issue Proceeds
Key Highlights from the Announcement
- GRP Limited has provided an update on the use of proceeds from its Rights cum Warrants Issue, which raised approximately S\$13.195 million in net proceeds.
- As of 20 January 2026, S\$12.957 million of the total proceeds have been utilised, with a remaining balance of S\$0.238 million.
- The funds have been allocated between new business initiatives and general working capital, with substantial reallocation between categories during the utilisation period.
- A significant portion of the proceeds has been directed to support the affordable housing project of Ratus Nautika Sdn Bhd, a 70%-owned indirect subsidiary of GRP Limited.
- A new contractor has recently been appointed to expedite the completion of the housing project in Sri Iskandar, Mukim Bota, Perak Tengah District, Malaysia.
Detailed Breakdown of Proceeds Utilisation
| Use of Proceeds |
New Business
(S\$ million) |
General Working Capital
(S\$ million) |
Total
(S\$ million) |
| Net Proceeds |
12.354 |
0.841 |
13.195 |
| Reallocation |
(5.982) |
5.982 |
– |
| Total |
6.372 |
6.823 |
13.195 |
| Amount utilised as at 26 September 2025 |
(6.372) |
(3.370) |
(9.742) |
| Balance as at 26 September 2025 |
– |
3.453 |
3.453 |
| Shareholder loan & working capital to Ratus Nautika Sdn Bhd |
– |
(3.215) |
(3.215) |
| Balance as at 21 January 2026 |
– |
0.238 |
0.238 |
Strategic Investment in Affordable Housing Project
The Company has channelled a total of S\$3.215 million in shareholder loans and working capital to Ratus Nautika Sdn Bhd, a 70%-owned indirect subsidiary. This investment is specifically targeted at the subsidiary’s affordable housing development in Sri Iskandar, Mukim Bota, Perak Tengah District, Malaysia. The project encompasses the construction of 1,039 single-storey terrace houses and 28 terraced shop units, intended to address the demand for affordable housing in the region.
Notably, the Company announced the appointment of a new contractor as of 1 May 2025 to accelerate the completion of this significant project. The Board has emphasised its commitment to ramping up progress to ensure buyers can take possession of their properties as soon as possible.
Potential Price-Sensitive Information for Shareholders
- Substantial Allocation to Housing Project: The significant capital deployment into a large-scale affordable housing development signals a strategic shift and commitment to this sector, which has the potential to impact future earnings and asset values.
- Appointment of New Contractor: The transition to a new contractor to expedite the project’s completion may alleviate prior concerns regarding project delays and could positively influence investor confidence and share valuation.
- Remaining Proceeds: With only S\$0.238 million yet to be utilised, shareholders can expect limited future announcements related to the allocation of these particular funds.
Outlook and Implications for Investors
The latest update reflects GRP Limited’s focused strategy in leveraging capital raised from shareholders to drive new business and support ongoing operations, particularly in the property development segment. Progress in the affordable housing project will be a key factor to monitor, as timely completion could unlock significant value for the Group and its shareholders. Any further updates on project milestones, sales, or financial performance arising from this investment may have a material impact on the Company’s share price.
Disclaimer
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with professional advisers before making investment decisions. GRP Limited’s future performance involves risks and uncertainties that may cause actual results to differ materially from those projected.
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