KUALA LUMPUR (July 13): G Capital Bhd (formerly known as Gunung Capital Bhd) has proposed renounceable rights issue of redeemable convertible unsecured loan stocks (RCULS) to raise up to RM102.62 million to part finance its 52.6 megawatt renewable energy projects.

The company said in a bourse filing the proposal entails the issuance of 1.28 billion five-year, 5%, RCULS at 100% of its nominal value of eight sen each, on the basis of four RCULS for every one existing share.

The conversion price of the RCULS was fixed at 90 sen. It represents a premium of 17.2% to the group’s five-day volume weighted average market price of 76.79 sen.

Of the proceeds, RM99.46 million will be used to finance the group’s project costs while RM2.31 million will be used for working capital.

According to G Capital, a major portion of fund raised will be utilised to accelerate the completion for its renewable energy projects, namely the solar photovoltaic energy generating system (solar PV system) and mini-hydropower plants projects.

“Barring any unforeseen circumstances, the proposed rights issue is expected to contribute positively to the future earnings of the group when the benefits of the utilisation of proceeds are realised,” it said, adding that it expects the proposal to be completed by the fourth quarter.  

Meanwhile, G Capital’s executive director Tan Sri Ali Hamsa said in a statement that with the diversification mandate from the group’s recent extraordinary meeting, the group is turning into full thrust to hasten the completion of solar PV systems and mini-hydro power plants projects.

“The proposed rights issue will gear us well financially for that purpose,” he said.

Barring any unforeseen circumstances, the management also expects some of the solar PV system projects to start operating i the second half and thus will contribute to the group’s revenue this year onwards over a span of 25 years.

It also expects the mini-hydropower plants to start contributing to the group’s revenue from the financial year ending December 31, 2025 onwards for a span of 21 years from the date of commission of the respective plants.

G Capital fell one sen to close at 75 sen today, valuing the group at RM243.72 million.