KUALA LUMPUR (July 4): G Capital Bhd’s share price soared to an eight-month high during morning trade on Tuesday (July 4), a day after it said to have secured a 21-year renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB). 

G Capital estimated a potential revenue of RM688 million from the REPPA with TNB, according to the company's filing.

Opening at an intraday low of 47 sen, the counter soared to 54 sen before paring its gains to 50.5 sen by 11.03am. The last time G Capital’s closing price rose above 54 sen was on Oct 28, 2022. 

At 50.5 sen, G Capital was still five sen or 10.99% higher compared to the previous trading day, implying a market capitalisation of about RM162.7 million. 

With 14.65 million shares having changed hands so far, G Capital was the fourth most active stock on Bursa Malaysia. 

G Capital, which builds and operates mini-hydro power plants, has two substantial shareholders. According to Bloomberg, Ban-Seng Packaging Sdn Bhd holds 32.2 million shares or a 9.99% stake while Percetakan Sanwa Sdn Bhd holds 18 million shares or a 5.59% stake. Both companies are under the Sanwa Group.   

Under the REPPA between G Capital’s subsidiary Northern Star Hydropower Sdn Bhd and TNB, which will commence from the commercial operation date of its power plants on Dec 6, 2027, the Malaysian multinational electricity company will buy electricity generated at a Feed-in Tariff (FiT) rate of 22.98 sen per KWh.