GRP Limited Announces Full Utilization of Rights Issue Proceeds and Progress on Key Affordable Housing Project

Key Highlights

• Full Utilization of Rights Issue Proceeds: GRP Limited has announced that the entire net proceeds of approximately S\$13.195 million raised from its Rights cum Warrants Issue have been fully utilized as at 25 February 2026.
• Detailed Breakdown of Proceeds Utilization: The proceeds were allocated across new business initiatives and general working capital, with detailed breakdowns provided.
• Investment in Affordable Housing Project: The last remaining funds were used to support an affordable housing project in Malaysia, undertaken by Ratus Nautika Sdn Bhd, a subsidiary in which GRP holds a 70% indirect interest.
• Appointment of New Contractor for Project Completion: A new contractor has been appointed to expedite the completion of the housing development, following earlier delays.

Detailed Analysis

1. Breakdown of Proceeds Utilization

GRP Limited successfully raised a total of S\$13.195 million through its Rights cum Warrants Issue. The funds were initially allocated as follows:

• New Business: S\$12.354 million
• General Working Capital: S\$0.841 million

Subsequently, S\$5.982 million was reallocated from New Business to General Working Capital to better match the Group’s operational needs. The final allocation was:

• New Business: S\$6.372 million
• General Working Capital: S\$6.823 million

As at 21 January 2026, a total of S\$12.957 million had been utilized, with a remaining S\$0.238 million earmarked specifically for working capital funding to Ratus Nautika Sdn Bhd.

2. Completion of Funds Utilization

The remaining S\$0.238 million was subsequently disbursed to Ratus Nautika Sdn Bhd, fully exhausting the net proceeds from the Rights Issue as of 25 February 2026.

3. Strategic Investment in Affordable Housing Project

The working capital funded to Ratus Nautika Sdn Bhd supports a significant affordable housing project in Sri Iskandar, Mukim Bota, Perak Tengah District, Malaysia. The project comprises:

• 1,039 units of single-storey terrace houses
• 28 units of terraced shops

This development aims to address local housing needs and can potentially generate substantial long-term value for shareholders as the project completes and units are handed over to buyers.

4. Appointment of New Contractor

Importantly for shareholders, GRP has appointed a new contractor as of 1 May 2025 to accelerate the construction and completion of the housing project. The Group is actively ramping up project progress to ensure delivery to buyers, which is a critical milestone for both revenue recognition and reputation management.

Shareholder Implications and Price-Sensitive Information

• Completion of Rights Issue Utilization: The full deployment of all proceeds signals that GRP has executed on its previously communicated capital allocation plans. This transparency and follow-through can build investor confidence.
• Progress on Major Development Project: The push to complete the affordable housing project, including the appointment of a new contractor, is a materially positive development. Successful completion and delivery could drive future revenue and profit recognition, and therefore impact share valuation.
• Potential Risks & Upside: As with all property development projects, there remain execution risks. However, the company’s proactive steps to appoint a new contractor may mitigate delays and enhance shareholder value.

Conclusion

The update from GRP Limited provides significant clarity to investors regarding the use of capital raised, and demonstrates a clear commitment to completing its affordable housing project in Malaysia. The transparent utilization of funds and the strategic steps taken to expedite project completion could be viewed positively by the market and may influence the company’s share price going forward.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own analysis or consult a professional advisor before making investment decisions.

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