Sunday 04 Jun 2023
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KUALA LUMPUR (Jan 12): Reneuco Bhd has proposed to undertake a private placement to raise as much as RM16.28 million for the working capital requirements of the East Coast Rail Link (ECRL) project, Kuala Nerus project and other existing operations and business expansions.

The company, formerly known as Kpower Bhd, said the private placement entails the issuance of up to 54.28 million new shares — 10% of Reneuco total issued shares — to independent third-party investors at an issue price to be determined, the group said in a bourse filing.

At the last practicable date (LPD) of Dec 30, 2022, Reneuco said it has an issued share capital of RM156.38 million comprising 542.8 million shares and 150.77 million outstanding warrants. 

It said based on the indicative issue price of 30 sen per placement share, the proposed private placement will raise gross proceeds of approximately RM16.28 million.

From the RM16.28 million, the group aims to utilise RM4.94 million each for the working capital requirements of the ongoing ECRL independent power producer project as well as the development of affordable and mixed housing development at Kuala Nerus, Terengganu within six months. 

It will also allocate another RM5 million for working capital requirements for existing operations within 12 months. Another RM1 million for business expansion through future investments and/or acquisitions and RM400,000 for estimated expenses of the proposed private placement. 

M&A Securities has been appointed as the placement agent for the proposed private placement.

On Thursday, the share price of Reneuco was 2.5 sen or 8.62% lower at 26.5 sen, valuing the group at RM141.44 million.

Edited ByIsabelle Francis
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