KUALA LUMPUR: Cypark Resources Bhd’s proposal to raise RM108mil via a private placement may not go down well with investors as the stock fell over 6% in early trade.
The counter fell 6.36%, or seven sen to RM1.03 with over 3.3 million shares traded.
Cypark has proposed to undertake a private placement to raise up to RM108.2mil to strengthen its renewable energy (RE) business.
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.
Cypark said the proceeds would be used to complete the construction of the solar PV (photovoltaic) energy generating facility with 173 MWp (megawatt peak) LSS3 project in Marang, Terengganu.