KUALA LUMPUR (Nov 17): PTT Synergy Group Bhd (KL:PTT) has proposed a private placement of up to 43.22 million new shares to raise as much as RM56.2 million, mainly to fund working capital for its construction and property development projects.

In a bourse filing on Monday, the group said the placement, representing up to 10% of its issued shares, will be carried out in one or more tranches, with the issue price to be determined later.

PTT Synergy said the proceeds, based on an illustrative issue price of RM1.30 per share, will be used primarily to meet working capital requirements, including payments to trade creditors for materials such as steel, cement, precast concrete and automated storage and retrieval systems.

Of the expected proceeds, RM55.4 million has been earmarked for working capital, while RM800,000 will go towards expenses related to the placement exercise. 

The group noted that it had an unbilled construction order book of RM493.1 million as at June 30, 2025, alongside an active tender book of about RM1.4 billion. It also secured RM106.2 million in additional contracts in October and completed the acquisition of 11.3 acres of freehold land earmarked for industrial warehouse development.

PTT Synergy said a private placement is the best way to raise funds quickly without borrowing or increasing costs. It will boost cash flow, support current and future projects, and expand the company’s capital for growth. Other options like bank loans or bigger equity raises would take longer or cost more, while a placement is faster with greater flexibility in identifying suitable investors.

The application to Bursa Malaysia for the listing of the placement shares is expected to be submitted within a month, with completion targeted by the first quarter of 2026.

Shares in PTT Synergy closed unchanged at RM1.38 on Monday, with a market capitalisation of RM596.38 million. Year to date, the stock has gained more than 22%.