PETALING JAYA: Jentayu Sustainables Bhd is planning another private placement to raise up to RM62.96 million to fund its pre-development expenditures for its Sabah hydropower project, and new projects.
In a bourse filing today, the sustainable energy solutions provider said the placement will involve the issuance of up to 57.24 million shares, or 10% of its share base of 572.37 million shares, to third-party investors to be identified later, at an issue price to be determined.
This will be the second placement exercise for the group which raised RM11.1 million in July for its pre-development spending.
The July placement, announced in June last year, was initially planned to raise as much as RM47.07 million by placing out up to 142.63 million shares that represented not more than 30% of its issued shares at the time.
The latest private placement is expected to raise up to RM62.96 million based on an illustrative issue price of RM1.22 per share, a 10% discount to the five-day volume weighted average market price of its shares.
Jentayu said the proposed placement will facilitate the expansion of the renewable energy segment and healthcare segment of the group. “This is in line with the aim of diversifying (our) business segments to improve the financial condition of the group.
“Additionally, it will grant the group greater flexibility and control over internally generated funds, reducing dependence on conventional bank borrowings,” it said.
The company, formerly known as Ipmuda Bhd, said RM26 million is to partially finance the group’s pre-development expenditures for project Oriole, which involves the development of two hydropower plants in Sabah, along Sungai Maligan and Hulu Sungai Padas.
Jentayu said the estimated project cost to develop these two hydropower plants is RM2.77 billion, which will be funded by bank borrowings and/or other fundraising exercises to be secured at a later date.
As at Dec 6, Jentayu had invested RM73.4 million for Oriole’s pre-development expenditures. It estimated that it will need to invest an additional RM26 million to complete the project’s pre-development phase.
Of the balance of the proceeds, it plans to use RM22.36 million for working capital and RM5.7 million for future viable investments in renewable energy-related projects.
Another RM5 million will be used to defray estimated expenses for its proposed acquisition of two hydropower plants in Tenom, Sabah, and one solar photovoltaic energy-generating facility in Pokok Sena, Kedah.
Jentayu has also earmarked RM1.6 million for the expansion of its healthcare division, and set aside the remaining RM2.3 million for estimated expenses relating to the private placement.
The exercise, which requires the approval of Bursa Malaysia Securities and Jentayu’s shareholders, is expected to be completed by the second quarter of 2024.
Jentayu’s shares ended 1 sen or 0.82% lower at RM1.21, valuing the group at RM508 million. The counter has gained 61% year-to-date.