KUALA LUMPUR: Avillion Bhd has proposed a private placement of 283 million new shares to raise approximately RM11.5 million, primarily to fund refurbishment works at its flagship property, Avillion Port Dickson. The proposed exercise is subject to shareholder approval.
Datuk Dani Abdul Daim, the son of the late Tun Daim Zainuddin, holds a 21.8% stake in the company. Post-placement, his shareholding will dilute to 17.5%.
According to its filing with Bursa Malaysia, Avillion intends to allocate RM4 million of the proceeds for the refurbishment of hotel rooms, the restaurant, gymnasium, and swimming pool. A further RM3.9 million will be channelled towards working capital, while RM3 million will be used for partial repayment of bank borrowings.
The total cost of the refurbishment project is estimated at RM15 million. The remaining RM11 million required will be sourced through internal funds or bank borrowings. Refurbishment works are scheduled to commence in the third quarter of 2025, with a projected completion timeline of 24 months.
As of now, Avillion’s total bank borrowings amount to RM76.5 million.
The company also announced its intention to seek shareholder approval for a proposed variation in the utilisation of proceeds from its 2021 private placement. Initially, RM3 million from the earlier fundraising—earmarked for hotel upgrades and the development of an eco-tourism park at Avillion Admiral Cove—will now be redirected towards working capital and loan repayment.
In 2021, Avillion raised RM22.7 million via a private placement at an issue price of 12 sen per share. Owing to the impact of the Covid-19 pandemic, RM5.5 million of the RM10 million originally allocated for loan repayments and upgrades was redirected towards operational needs. To date, RM2.6 million has been utilised for refurbishments at Avillion Hotel Port Dickson, specifically on its ballroom, function spaces, and public amenities. As of April 2025, RM3 million remains unutilised.
Avillion confirmed the cancellation of the eco-tourism park project at Avillion Admiral Cove, which had not commenced. The group now aims to focus its resources on enhancing existing assets—namely, room upgrades, facility improvements, and ongoing maintenance at Avillion Port Dickson—to maintain competitiveness.
The group stated it remains committed to asset improvement but will proceed cautiously in alignment with the market’s recovery trajectory. Future projects may be funded through debt financing or strategic partnerships.
On Friday, shares of Avillion closed 11.11% higher at five sen, valuing the group at RM56.7 million. Year to date, the counter has gained 11.11%.
-The Edge Malaysia
