KUALA LUMPUR: Kumpulan Powernet Bhd (KPower) plans a private placement of its shares worth RM51.31 mil to individuals and entities, with the proceeds to be used for working capital including for the construction business, and costs of the exercise.
The investment holding company that is involved in manufacturing, property development and property investment said the value was derived on the assumption of an indicative price of RM1.75 per placement share.
KPower said in a statement today that this involves up to 29.31 million shares in KPower or up to 58.63 million new subdivided shares, representing up to 35% of the company’s issued ordinary share capital.
The placement shares would be allocated to company chairman Datuk Dr Mohd Karim Abdullah totalling 9.4 million or 18.8 million subdivided shares which represent 11.22% placement shares to the company’s issued share capital.
Others include an allocation to Grand Deal Vision of 5.4 million placement shares or 10.8 million subdivided shares which represent 6.45% to the company’s issued share capital.
“The remaining portion of 14.51 million placement shares or 29.03 million subdivided shares, representing 17.33% of the company’s issued share capital shall be placed out to the persons or parties who/which are qualified,” it added.
KPower said the exercise forms an integral part of the group’s fundraising strategy to defray its day-to-day working capital requirement for the existing businesses and construction business.
“The management is proposing to undertake the proceeds mainly for the working capital for the construction awards which are expected to contribute positively to the financial position of the group in future,” it added.
At the same time, KPower had also proposed to diversify into the construction business and construction-related activities.
KPower recently won a RM354 mil contract from Kangsar Hidro Sdn Bhd to undertake, among others, the preliminary study, design, supply, construction, commissioning and completion of five mini-hydropower plants with a total capacity of 32.47MW in Perak. – May 20, 2020, Bernama
