KUALA LUMPUR (July 11): Mudajaya Group Bhd is planning to place out up to 10% of its issued share capital to select private investors to raise up to RM75.45 million, to partially fund the construction of a new solar power plant in Kuala Kangsar, Perak.

Of the amount to be raised, it expects to use RM55 million from the proceeds for the plant or power concession asset, with the remainder to be used as working capital and to defray expenses related to the corporate exercise, said Mudajaya in a Bursa Malaysia filing today.

Last December, the group said it would undertake the development of a large scale solar photovoltaic plant in Sungai Siput, Kuala Kangsar. On March this year, it said it had inked a power purchase agreement with Tenaga Nasional Bhd, who committed to offtake power generated from the plant for 21 years.

"Construction of the [plant] had commenced in July 2017, and the estimated completion date of the Project is in June 2018," Mudajaya updated today.

The proposed placement will involve the issuance of up to 60.36 million shares, at an indicative price of RM1.25 per placement share, said Mudajaya in a Bursa Malaysia filing today.

The indicative price represents a discount of approximately 9.42% to the five-day volume weighted average market price (VWAP) of its shares up to June 29, of RM1.38 per share.

It said the shares would be placed out to investors who would be identified at a later stage.

Subject to approvals obtained, the planned placement is expected to be completed by the third quarter of this year.

Mudajaya Group's shares slid two sen or 1.43% to close at RM1.38 today, giving it a market capitalisation of RM743 million.