KUALA LUMPUR (Nov 25): Aizo Group Bhd (KL:AIZO), formerly Minetech Resources Bhd, has proposed to raise up to nearly RM200 million from a private placement exercise and a rights issue exercise.

The private placement, which involves up to 30% of its issued shares or 763.88 million new shares, aims to raise up to RM46.6 million.

It plans to use RM40 million for the development of its large-scale solar facility in Kampar, Perak (LSS5 project). Another RM5.59 million has been earmarked for its working capital to pay staff costs and other operating and administrative expenses.

Aizo’s executive chairman Datuk Abang Abdillah Izzarim Abang Abdul Rahman Zohari will be allocated 100 million shares while executive director Ahmad Rahizal Datuk Ahmad Rasidi and executive director (finance and technology) Emma Yazmeen Yip Mohd Jeffrey will subscribe for 15 million shares each.

The remaining shares will be placed out to third-party investors.

Meanwhile, its one-for-one rights issue is expected to raise up to RM148.96 million, involving the issuance of 3.31 billion rights shares. There will also be the issuance of up to 1.66 billion warrants on the basis of one warrant for every two right shares subscribed.

The board has determined to undertake the rights issue based on a minimum subscription level to raise minimum gross proceeds of RM10.94 million based on the indicative issue price of 4.5 sen per rights share. Abang Abdillah Izzarim and Emma Yazmeen Yip will subscribe for at least 222.22 million and 21 million right shares respectively.

Aizo said in the event that the private placement is not approved by the company’s shareholders at an extraordinary general meeting EGM to be convened, the company will still implement the rights issue exercise.

Proceeds from the rights issue will support ongoing and future construction contracts, working capital, new business ventures and digitalisation initiatives across the group.

Aizo also proposed a RM75 million share capital reduction to offset its accumulated losses of RM46.26 million as at June 30, 2025, at the group level, thus resulting in a retained profit of RM26.86 million at the group level.

 Note that Aizo had earlier raised RM20.9 million via six tranches of 178.48 million placement shares in total. The fundraising exercise was completed on May 23 this year.

Aizo is involved in the provision of specialised civil engineering services; manufacturing and trading of bituminous products; and manpower and maintenance services, among others.

The group suffered losses over the past four years. For the first quarter ended Sept 30, 2025 (1QFY2026), the group posted a smaller net loss of RM1.63 million versus RM2.52 million a year before, as revenue expanded 21% to RM33.94 million from RM28.05 million.

Aizo’s share price closed unchanged at seven sen on Tuesday, giving the group a market capitalisation of RM137 million. Year to date, the stock has fallen 48%.