PETALING JAYA: Cypark Resources Bhd has proposed to undertake a private placement to raise up to RM108.2mil to strengthen its renewable energy (RE) business.
In its exchange filing, Cypark said the proposed private placement would involve up to 105 million new ordinary shares, representing up to 20% of the total number of issued shares in the company, at a price that would be determined and announced later.
It said based on the illustrative issue price of RM1.03 per placement share, the proposed private placement is expected to raise gross proceeds of up to RM108.2mil.
The funds raised would be used to further expand the company’s competitive advantage and increase its foothold as a contributor to the government initiatives to increase RE production.
“The proceeds will be used to complete the construction of the solar photovoltaic energy generating facility with 173-megawatt-peak (MWp) large scale solar three project in Marang, Terengganu, ” Cypark said.
It said upon completion of the facility, as well as the company’s 25MW waste-to-energy plant in Tanah Merah, Negri Sembilan, Cypark would increase its ownership of RE assets capacity to 245MWp from the current operating capacity of 47MWp.
Cypark said in addition to its own assets, the company would be operating a total of 150MWp solar assets, including the 100MWp floating solar by the middle of 2021 under its engineering, procurement and construction plus operation and management long-term contract.
It added that in total, Cypark is expected to have secured capacity of solar assets built, owned or operated by the company of over 395MWp by the financial year ending Oct 31, 2022.