MAIN Market-listed diversified conglomerate Meta Bright Group Bhd (formerly Eastland Equity Bhd) has today (June 9) proposed private placement of new shares to raise gross proceeds of up to RM21 mil.
The fund-raising exercise will primarily support the group’s growing renewable energy (RE) and energy efficiency (EE) businesses while reducing the group’s existing bank borrowings to strengthen its overall financial standing.
This proposed private placement which allows the issuance of up to 253 million new shares or 10% of Meta Bright’s issued share capital will provide quicker access to capital compared to alternative fund-raising methods while avoiding dilution and costly interest associated with bank financing.
Of the RM21 mil to be raised, RM8.75 mil will be channelled into Meta Bright’s on-going and future energy-related projects.
The group currently manages 28 active solar photovoltaic (PV) projects and four EE projects across various states, including Selangor, Johor, Pahang and Terengganu.
These initiatives are integral to Meta Bright’s strategy to build sustainable, long-term and recurring revenue streams.
Additionally, RM2 mil from the proceeds will be utilised to partially repay a term loan facility, thus reducing interest costs and improving the group’s profitability and financial health.
Another RM8 mil will be directed towards working capital to support day-to-day operations and providing flexibility for further business expansion.
Above all else, the group has also allocated RM2 mil to further develop its money lending business segment which aims to broaden its market reach and enhance income streams.
“This private placement is strategically structured to support our aggressive expansion into the RE and EE sectors with the markets showing strong, sustained growth prospects,” commented Meta Bright’s executive director (corporate and strategic planning) Derek Phang Kiew Lim.
“By deploying this capital swiftly and effectively, we expect increased earnings visibility and enhanced profitability in the coming years.”
To-date, Meta Bright’s RE and EE segments have experienced robust growth with on-going and future contracts demonstrating strong revenue potential.
These projects include solar installations for manufacturers, government buildings, worship places and commercial entities.
In a way, the private placement exercise is timely as it positions the group to capitalise on Malaysia’s ambitious energy transition initiatives outlined in the National Energy Transition Roadmap (NETR).
“Reducing debt levels through this exercise will directly benefit our bottom line. Lower financing costs combined with strong recurring income from energy projects will ensure long-term profitability,” justified Phang.
“We are committed to maintaining prudent financial management while actively pursuing sustainable growth opportunities.”
At the end of today’s (June 9) market trading, Meta Bright was down 0.5 sen or 4% to 12 sen with 120,600 shares, thus valuing the company at RM304 mil. – June 9, 2025
