Mudajaya Group to place out shares to raise up to RM75.4m

PETALING JAYA: Mudajaya Group Bhd plans to place out new shares of up to 10% of the company's total number of issued shares to raise up to RM75.44 million to partly fund the construction of a large scale solar PV plant (LSSPV) and working capital.
The company told Bursa Malaysia the proceeds is based on an indicative issue price of RM1.25 per placement share.
On Dec 21 2016, the Energy Commission Malaysia (ST) awarded a LSSPV of 49.00 MWa.c in Sungai Siput, Kuala Kangsar, Perak to the group. Under the power purchase agreement with Tenaga Nasional Bhd, the project will be undertaken by its unit Sinar Kamiri Sdn Bhd on a build-own-operate basis. Construction of the LSSPV commenced in July 2017 and the estimated completion date is in June 2018.
The actual gross proceeds to be raised from the exercise is dependent on the issue price and the number of placement shares to be issued.
The group told Bursa Malaysia the private placement is the best avenue to raise funds for the group as it enables it to raise additional funds without incurring interest costs as compared to conventional bank borrowings. It will also provide the group an expeditious way of raising funds from the capital market as opposed to other forms of fund raising; and increases the size and strength of the group's shareholders' funds.
The group's share price was down two sen to RM1.38 yesterday, for a market capitalisation of RM742.99 million