KUALA LUMPUR: Kumpulan Powernet Bhd has proposed to issue new shares to its substantial shareholders and other investors, as the company seeks to raise funds for recently secured construction projects.
KPowernet, in a filing with Bursa Malaysia on Tuesday, said it intends place out up to 29.3 million new stocks, or 35% of the company's issued share capital.
About half the placement shares will be taken up by chairman Datuk Mohd Abdul Karim Abdullah and a company controlled by group managing director Mustakim Mat Nun.
The remaining new shares to be issued will be placed out to third party investors to be identified later.
Currently, Karim and Mustakim's Grand Deal Vision Sdn Bhd have a combined 49% stake in KPowernet.
KPowernet said at an indicative price of RM1.75 a share, the share placement exercise is expected to raise up to RM51.31mil.
The company said that it has proposed a 1-into 2 share split after the placement exercise.
It is also seeking its shareholders approval to diversify its business into the construction.
Karim, the founder of Serba Dinamik Holdings Bhd and his business partner Mustakim first emerged as substantial shareholders in KPowernet in June last year.
Since then, the company has secured around RM1bil worth of new construction-related jobs, including mini hydropower projects in Perak, Laos and Nepal.
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