Singaporean investment holding company Capital World plans to secure up to 16.45 million Singaporean dollars ($11.9 million) from Malaysian investment to rubber strips maker PRG Holdings via new shares issue.

Under the terms of the deal, PRG will buy 265 million new shares of Capital World for $6.8 million and have the option to subscribe for up to 205 million more new shares for a further $5.2 million exercised within three months of the placement.

Capital World will use the net proceeds for the capital city project and working capital, including repayment of existing loans and borrowings.

Assuming all the options are exercised, PRG will hold a 26.3 percent stake in Capital World through the deal.