Monday, 8 July 2013

HELP International planning a corporate exercise to raise funds for Subang 2 campus?

HELP International Corp Bhd is planning a corporate exercise, likely a rights issue or share placement to raise funds for the construction of its new university campus in Subang Jaya according to sources familiar with the company. HELP has a 23-acre parcel of land in Subang Jaya purchased at end-2009 for RM20m.
  • The tract will house the HELP International School and the Subang 2 university campus. Construction has already started, The building costs are expected at RM40m and for the Subang 2 campus, RM150m With the new campus the group aims to increase the student base to 20,000. (Financial Daily)
This potential development is not a surprise. We have been highlighting in the past HELP is likely looking to finance the capex for the Subang 2 campus by a combination of equity and debt funding. The new campus is expected to be completed by 2016.

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