PETALING JAYA: Citaglobal Bhd
has proposed to raise up to RM42.09mil through a private placement of up to 46.77 million new shares, representing 7.05% of its enlarged share capital to Berjaya Securities.
In a filing with Bursa Malaysia, the group said the funds will be used primarily to finance the Gebeng Land Acquisition, fund expansion and investment in existing businesses, working capital and to defray expenses for the proposed private placement.
At a subscription price of 90 sen per share, the placement price represents a slight 0.55% discount to the last traded price of 90.5 sen, but a premium to several volume-weighted average prices, including a 1.16% premium to the five-day volume-weighted average price (VWAP) and a 7.04% premium to the 12-month VWAP.
Upon completion of the proposed exercise, Berjaya Securities will hold a 8.66% based on the total number of issued shares and a 6.59% stake based on the enlarged total number of issued shares assuming all the convertible securities are exercised or converted.
Citaglobal said it has 12.37 million of warrants B, 85.09 million of warrants C, 2.4 million of irredeemable convertible preference shares (ICPS) A, and 69.90 million ICPS B. sThe proposed private placement is expected to be completed by the second quarter of financial year 2026.
Out of the expected RM42.09mil in gross proceeds, the group plans to allocate RM13.5mil for the Gebeng land acquisition, RM18.5mil for the expansion and investment in existing business, RM8.6mil as working capital, and RM1.49mil to cover expenses related to the private placement exercise.
Citaglobal noted the RM13.5mil earmarked for the Gebeng land will be used to reimburse earlier payments and settle the remaining cash portion of the RM90mil acquisition, which was largely satisfied via the issuance of ICPS.
Meanwhile, the RM18.5mil allocated for the expansion and investment in existing business will support investments in renewable energy initiatives, including the acquisition of controlling stakes in hydropower assets and development costs for a 200MW large-scale solar (LSS) project under the LSS PETRA 5+ programme in Kuantan, as well as a bio-compressed natural gas upgrading facility in Pahang, Kelantan and Terengganu.
On the rationale of the proposed private placement, Citaglobal said the group is of the view that such an exercise is the most appropriate avenue of fundraising.
This is because it enables the company to raise funds expeditiously without incurring interest costs or having to service principal repayments, as compared to bank borrowings.
As a result, Citaglobal is able to preserve its cash flow.
As at Sept 30, 2025, the group has a total outstanding order book of RM1.1bil whilst its property segment has an estimated remaining gross development value of RM449mil.
Going forward, Citaglobal said the construction sector is expected to remain stable in 2026 with a projected growth of 6.1%, undrpinned by positive performance across all subsectors.
“The realisation of approved strategic investments under national policies and commencement of projects under the 13th Malaysia Plan, will further support the sector’s performance.
“Within the subsectors, major infrastructure and utilities development such as LRT Mutiara Line, Hybrid Hydro Floating Solar and Asean Power Grid will steer the civil engineering subsector’s performance.”
