Mudajaya to raise up to RM75.45mil via private placement

PETALING JAYA: Mudajaya Group Bhd has proposed to undertake a private placement of up to 10% of its total share base to third-party investors that will be identified later.

The construction engineering company said in a statement to Bursa Malaysia that the placement exercise was expected to raise between RM67.3mil and RM75.45mil.

This is based on an indicative issue price of RM1.25 per placement share, Mudajaya said. (The counter closed at RM1.38 on Tuesday, down 2 sen.)

The company said that the placement shares would be issued at a price of not more than a 10% discount to the five-day, volume-weighted average market price of Mudajaya’s shares immediately preceding the price-fixing date.

The placement shares would rank the same in all respects with existing Mudajaya shares, it said.

The funds of RM55mil raised from this placement exercise will be used to fund the construction of the new power concession asset that was awarded to the company on Dec 21, 2016.

The award was from the Energy Commission to undertake the development of a large-scale solar photovoltaic plant with a capacity of 49MW in Kuala Kangsar, Perak.

“Under the power purchase agreement, the project will be undertaken by Mudajaya on a build-own-operate basis and the proceeds from this private placement is expected to be utilised to partially fund the construction cost of the project. Construction of the plant has already commenced in July 2017 and the estimated completion date is in June 2018,” it said.

The remainder of the funds will be set aside for the company’s working capital (depending on the amount raised based on the maximum or minimum scenario) and for paying off expenses for this exercise.