KUALA LUMPUR (Aug 20): MN Holdings Bhd (KL:MNHLDG) is seeking to raise up to RM95.88 million through a private placement of up to 10% of its enlarged share base for its working capital.

This will involve the issuance of as much as 67.62 million new shares, it said in a bourse filing Wednesday. As at end-March this year, the engineering services solutions company had cash reserves of RM58.52 million and total borrowings of RM9.21 million.

The final price of the shares has yet to be set; the expected sum to be raised is based on an illustrative price of RM1.418 — a 9.97% discount to its five-day average price of RM1.575.

Funds raised would be used to purchase equipment, including an earthing transformer, a gas insulation substation and switchgear capacitive voltage transformers.

The company, which has not conducted any fundraising activity since its listing in April 2022, expects to complete this exercise by the fourth quarter of this year.

MN Holdings is principally involved in underground utilities engineering services solutions, and substation engineering services and solutions.

The group has been profitable in the last three financial years, according to AskEdge. Its group's net profit increased from RM5.5 million in the financial year ended June 30, 2022 (FY2022) to RM16.9 million in FY2024, driven by higher revenue and improved margin.

On prospects, MN Holdings is planning to capitalise on opportunities presented by the National Energy Transition Roadmap (NETR), which is anticipated to drive significant investments in renewable energy and sustainable infrastructure. The company believes it is well-positioned to participate in initiatives such as the Large Scale Solar programme and the Corporate Renewable Energy Supply Scheme, while continuing to expand its presence in the rapidly growing data centre sector.

It also expects to benefit from Tenaga Nasional Bhd’s (KL:TENAGA) planned capital expenditure of RM42.80 billion for the 2025-2027 regulatory period, which is projected to increase demand for utilities infrastructure and grid enhancement work.

"Supported by a robust order book, alignment with national priorities and the accelerating momentum of the digital infrastructure sector, the group remains confident in its ability to sustain growth, enhance shareholder value, and solidify its position as a key enabler of Malaysia’s energy transition and digital economy," MN Holdings said in its filing.

On Wednesday, MN Holdings' shares settled five sen or 3.5% higher at RM1.48, giving it a market capitalisation of RM880.04 million.