KUALA LUMPUR (May 9): HeiTech Padu Bhd (KL:HTPADU) has proposed a one-for-four bonus share issuance to reward shareholders, followed by a private placement of new shares to raise up to RM43.7 million to finance the development of the National Integrated Immigration System (NIISe) project.
It is also planning to diversify its business into the engineering, development and operation of renewable energy power plants, according to HeiTech Padu in a bourse filing on Friday.
On the placement, HeiTech Padu said it will take place after the completion of the bonus issue, adding the placement shares will not be eligible to get the bonus shares.
The proposed bonus issuance, on the basis of one bonus share for four existing shares held, will involve the issuance of up to 27.84 million new shares.
The private placement, on the other hand, will involve the issuance of up to 27.84 million new shares, representing 20% of the company's existing issued share capital, at a price to be fixed.
Proceeds to be raised from the placement are based on the assumption that the shares would be issued at RM1.57 apiece — a discount of about 9.5% to the theoretical ex-bonus price of HeiTech Padu shares of RM1.734.
As of April 25, HeiTech Padu’s issued share capital stood at RM136.65 million, comprising 111.35 million shares. On completion of the proposals, its share capital is expected to increase to 167.02 million shares, valued at RM180.356 million.
HeiTech Padu plans to use RM35 million from the placement proceeds for the development of the NIISe project, a substantial undertaking valued at RM892.2 million that the company secured last October. The balance will be used for working capital and to cover expenses related to the corporate exercises.
HeiTech Padu had just completed another private placement last July, to raise funds for working capital. It placed out 10.122 million shares, raising RM18.9 million, which the company said had been fully utilised.
Green energy venture
HeiTech Padu is also planning to venture into the "development, ownership, operation, and maintenance of renewable energy power plants". This diversification will also encompass related engineering, procurement, construction, and commissioning or EPCC services for energy solutions.
It said this diversification presents a strategic opportunity for the group to broaden its business portfolio into a sector that offers stable and long-term growth prospects, and reduce its reliance on the information and communications technology (ICT) segment.
In February, HeiTech Padu announced that it had secured a hydroelectric facility project in Sungai Perak valued at RM1.04 billion, in collaboration with its consortium partner Voith Hydro GmbH & Co KG, an Austrian subsidiary of the German-based Voith Group.
In its latest filing, the group said the hydroelectric EPCC project will serve as its initial entry point into the renewable energy industry, with plans to explore further opportunities in renewable energy assets in the future.
“Through its strategic collaboration with Voith Hydro, the group is able to enhance its capability to execute large-scale energy projects while gaining valuable industry expertise,” the company stated.
The proposals require shareholders' approval. If the relevant approvals are secured, it expects the bonus issue and private placement to be completed by the third quarter of 2025.
HeiTech Padu shares closed two sen or 0.9% higher at RM2.16 on Friday, giving the group a market capitalisation of RM240.51 million. Year to date, the stock has dropped 31%.