KUALA LUMPUR: Aizo Group Bhd has secured approval from Bursa Malaysia Securities Bhd for a series of corporate exercises to strengthen its balance sheet and support future growth.
In a statement, Aizo said the proposals include a private placement, rights issue with free warrants, share capital reduction, and allocations to investors and key management, forming a comprehensive capital restructuring and fundraising exercise.
With Bursa Securities’ approval secured and subject to shareholders’ approval at an upcoming extraordinary general meeting, Aizo can now unlock multiple funding avenues, including the issuance of up to 763.9 million placement shares and over 3.31 billion rights shares with free warrants, providing flexibility to raise capital while broadening shareholder participation.
The proposals also include allocations to strategic and internal stakeholders, aligning key parties with the company’s long-term growth trajectory.
Aizo said proceeds from the proposed private placement will be primarily used for capital injection into the Large Scale Solar 5 (LSS5) project, announced on April 28, 2025, following the formalisation of a power purchase agreement with Tenaga Nasional Bhd
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“The approval from Bursa Securities marks a step forward in executing our capital strategy. These Proposals are designed not only to strengthen our balance sheet, but also to equip Aizo with the financial flexibility required to support our next phase of growth,” executive chairman Datuk Abang Abdillah Izzarim said.
“As we expand our presence in areas such as renewable energy and infrastructure, having the right capital structure is critical. The LSS5 project is a key growth driver for the company, and this fundraising exercise will enable us to execute it effectively while positioning Aizo for sustainable long-term value creation,” he added.
Aizo said the inclusion of warrants in the proposed rights issue provides an added incentive for shareholders to subscribe, while the share capital reduction aims to rationalise its capital base.
Upon completion, the proposals are expected to strengthen the company’s capital position and support its transition towards more sustainable and scalable earnings streams.
The proposals remain subject to shareholders’ approval and regulatory requirements. Aizo said it remains focused on executing its strategic priorities while strengthening its financial base for long-term value creation
