KUALA LUMPUR (Sept 2): Manufacturing and construction company Central Global Bhd (KL:CGB) is planning to raise up to RM83.31 million through a private placement, mainly to fund its ongoing construction projects in Sabah.

In a bourse filing on Wednesday, the group said it plans to issue up to 106.62 million new shares, equivalent to 10% of its enlarged issued share capital (assuming the full exercise of its 51.82 million outstanding Warrants B), to third-party investors at an issue price to be determined later.

As at Aug 27, Central Global had an issued share capital of RM305.2 million comprising 1.01 billion shares and 51.82 million Warrants B.

For illustration, the placement shares are assumed to be priced at 78.14 sen each, representing a 10% discount to the five-day volume-weighted average market price of 86.82 sen up to Aug 27.

Under the maximum scenario, about RM67 million, or 80.4% of the proceeds, will be used to fund two ongoing construction projects — a water supply system in Lahad Datu and the upgrading of the Pan Borneo Highway, both in Sabah.

Another RM15.67 million, or 18.8%, will be allocated for general working capital, while the remaining 0.8% will be used to defray expenses related to the private placement.

As at end-August, Central Global had four ongoing construction projects with a combined contract value of RM1.1 billion. Of this, RM593.1 million had been billed, with the remaining RM513.5 million expected to be recognised up to the financial year ending Dec 31, 2029.

The group is also tendering for six construction projects with an estimated combined contract value of RM822.9 million as at Aug 31.

Central Global reported a net profit of RM436,000 for the quarter ended June 30, 2026, on revenue of almost RM31 million. There is no year-on-year financial comparison given that the company has changed its financial year end from June 30 to Dec 31. It had cash and bank balances of RM12.14 million against total borrowings of RM169.61 million as at end-June.

The group said it had not undertaken any other equity fundraising exercise in the past 12 months. The proposed private placement is expected to be completed by the first quarter of 2027.

Shares in Central Global closed half a sen, or 0.57%, higher at 87.5 sen on Wednesday, giving the group a market capitalisation of RM887.56 million.