Avillion sees emergence of new shareholder Lim Chai Hock with 15% stake after private placement

• Following the placement, it is estimated that Datuk Md Wira Dani Abdul Daim—son of the late Tun Daim Zainuddin—will see his stake in Avillion reduced to 17.5% from 21.8%, though he remains the company’s largest shareholder.

KUALA LUMPUR (Aug 12): Hotel operator Avillion Bhd (KL:AVI) has seen the emergence of Lim Chai Hock as its second largest shareholder, following his acquisition of 213 million shares representing a 15% stake in the company via a private placement.

According to a Bursa Malaysia filing, placement agent RHB Investment Bank confirmed the completion of the exercise, which involved the issuance of up to 283.32 million shares representing 25% of Avillion's issued shares at four sen apiece, raising gross proceeds of RM11.32 million. Lim’s block, valued at RM8.52 million, accounted for about 75% of the total placement.

The private placement, initially targeted to raise RM10.48 million, was earmarked for hotel refurbishment and maintenance (RM4 million), repayment of bank borrowings (RM3 million) and working capital requirements, net of corporate exercise expenses.

Following the placement, it is estimated that Datuk Md Wira Dani Abdul Daim—son of the late Tun Daim Zainuddin—will see his stake in Avillion reduced to 17.5% from 21.8%, though he remains the company’s largest shareholder.

Earlier in July, Avillion’s external auditor, Baker Tilly Monteiro Heng PLT, flagged doubts about the group’s ability to continue as a going concern in its audited financial statements for the year ended March 31, 2025 (FY2025). The group posted a net loss of RM8.84 million and reported a negative cash position of RM8.96 million.

The auditor noted that Avillion’s viability depends on several initiatives, including boosting hotel occupancy through innovative packages, disposing of low-yielding land assets, accelerating property sales and securing financial support. Without these, the group may face challenges in realising assets or settling liabilities in the normal course of business.

Avillion, which has been loss-making for the past decade, said it has already begun implementing some of these initiatives and remains committed to navigating the challenging operating environment.

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