Snippets
PUC uses money raised for mobile app development
Ho Chung Teng 05 Sep 2017 15:07
PUC Bhd is planning to develop a mobile app.

PUC Bhd, formerly known as PUC Founder (MSC) Bhd, is planning to utilise up to RM36.44 mil for the development of a mobile application as it seeks to expand its IT business, particularly electronic commerce and payment, advertising and media-related businesses.

In June, PUC completed the acquisition of the entire stake in Singapore-based IT business solutions provider Enovax Pte Ltd for S$2 mil (RM6.29 mil), as part of its expansion plan into mobile apps. The PUC mobile app will be created through the integration of PUC’s expertise in the e-payment services and advertising and media services.

The RM36.44 mil proceeds were initially raised in 2016 to construct several solar photovoltaic (PV) plants, with the intention to sell the renewable energy (RE) via the RE quota for the Feed-in Tariff (FiT) system granted by the Sustainable Energy Development Authority of Malaysia (SEDA). PUC raised RM42.65 mil, but as of Aug 9, 2017, only utilised RM6.2 mil of the proceeds.

PUC said since the completion of the rights issue of ICULS with warrants on Feb 24, 2016, and following the death of Cheong Chia Chieh @ Chang Chia Chieh (former MD of PUC) on Feb 27, 2016, the company has not been awarded new concessions or renewable energy power purchase agreement (REPPA).

For its PV business segment, PUC said that it has yet to identify any suitable projects with desirable yields, as further RE quotas have not been announced by SEDA.

PUC adds that SEDA’s FiT rates in 2016 were lower than previous years, making yields less lucrative than anticipated.

“The company has yet to identify any suitable bid(s) with desirable yields, as further request for bidding for large scale solar projects have yet to be announced by the Energy Commission.

“The company also faces negative carry on the remaining ICULS proceeds where the interest PUC earns on them are lower than the ICULS coupon rate of 4.0%,” PUC adds.