PETALING JAYA: G Capital Bhd
(GCap) has proposed to undertake a renounceable rights issue to part fund its 20MW mini-hydropower plant projects in Perak.
In a filing with Bursa Malaysia yesterday, GCap corporate exercise entails the issuance of 1.4 billion five-year redeemable convertible unsecured loan stocks (RCULS), with a nominal value of up to RM112.9mil at 100% subscription and at its nominal value of eight sen each
The RCULS will carry a coupon rate of 8% per annum payable quarterly in arrears, and would be issued on the basis of four RCULS for every one existing ordinary share in G Cap held on an entitlement date to be determined later.
The proposed exercise will enable GCap to raise at least RM17.21mil and a total of RM112.9mil under the maximum subscription level.
“We believe the Proposed Rights Issue is attractive and appealing to our fellow shareholders to participate and be rewarded with fixed interest income whilst witnessing GCap Group’s growth trajectory,” GCap’s executive director Datuk Yap Yee Ping said in a statement.
GCap’s board of directors said RM11.8mil of the proceeds arising from the proposed right issue would be utilised as working capital within 12 months of the first issue, while RM100.4mil would be channelled towards part-financing project costs within 24 months of the first issue if the maximum subscription level of RM112.9mil is achieved.
GCap’s projects are the mini-hydropower plants namely, Sg Perak Salu (10MW), Sg Temelong and Sg Ibul (8MW) and Sg Geroh (2MW), all anticipated to commence this year with expected completion dates in 2026 and 2027.
The aforementioned projects are expected to contribute positively to the group’s future financial performance.
The RCULS may also be converted to ordinary shares of GCap at any time during the tenure, and will be freely transferable in lots of 100 units for the purpose of trading on Bursa Malaysia.
