KUALA LUMPUR (March 17): Uzma Bhd is proposing a private placement of up to 10% of its share capital to raise an estimated RM21.79 million to partially fund the group’s development of a 50MW Large Scale Solar 4 project in Sungai Petani, Kedah.

The placement will involve the issuance of up to 35.20 million shares in Uzma to external parties at a discount of not more than 10% of the group's five-day volume weighted average market price immediately before the price-fixing date, according to Uzma's bourse filing Friday (March 17).

The estimated proceeds to be raised was based on an illustrative issue price of 61.9 sen.

The group has estimated that the project's total cost would be RM229 million. The group plans to tap bank borrowings and internal funds to fund the balance of the project's development cost.

In August 2021, Tenaga Nasional Bhd signed a 21-year power purchase agreement with Uzma’s wholly owned Uzma Kuala Muda Sdn Bhd to uptake power generated by the plant that Uzma will design, build, operate and maintain in Ladang Bukit Hijau, Kuala Muda.

Shares of Uzma closed one sen or 1.6% higher at 64 sen on Friday, valuing it at RM225.3 million.