PETALING JAYA: Pestech International Bhd
has proposed to undertake a restricted issue of 1.33 billion new shares to Dhaya Maju Infrastructure (Asia) Sdn Bhd at an issue price of 12 sen a share, raising RM160mil in the process.
In a filing with Bursa Malaysia, Pestech noted Dhaya Maju is jointly owned by Datuk Seri Dr Subramaniam Pillai with a 37.5% stake, Datuk Mohamed Razeek Md Hussain Maricar (21%), Siti Saffur Mansor (17.5%), Nazreen Ahmad (15%) and Datuk Shaharuddin Md Som (9%).
The restricted issue equals 57.52% of Pestech's enlarged total number of issued shares post-completion of the subscription by Dhaya Maju.
Hence, the subscriber and persons acting in concert intend to seek an exemption from the Securities Commission from having to undertake a mandatory take-over offer for the remaining shares and outstanding warrants in the company.
The proposed restricted issue will be implemented in a single tranche within six months from the date of approval from Bursa Malaysia, Pestech added.
Dhaya Maju and its subsidiaries are principally involved in the engineering, procurement, construction and commissioning of public mobility and transportation (railways and highways), railway engineering and technology and real estate development. It is involved in infrastructure projects in Malaysia and India.
Pestech noted the exercise will give it immediate cash relief to fund its projects as well as improve its gearing level.
Pestech has a work order book of RM646.69mil but is weighed down by debts of RM1.09bil and a gearing ratio of 5.63 times as at June 30, 2024.
Pestech intends to use RM60mil of the money raised to repay bank borrowing and another RM82mil as working capital for its projects, including payment to suppliers, subcontractors and material costs.
Its projects include contract works from Tenaga Nasional Bhd, National Grid Corp of Philippines, Electricite Du Cambodge, RTS Operations Pte Ltd and other electrification and rail projects.
Another RM17mil will go to its day-to-day operating and administrative expenses, the filing stated.
Pestech will undertake a capitalisation of the deposit of RM16mil deposit paid by the subscriber for the proposed restricted issue, through the issuance of 133.33 million new shares at an issue price of 12 sen per capitalisation share if the restricted issue does not happen.
