KUALA LUMPUR (Sept 25): Energy and engineering solutions provider Kinergy Advancement Bhd (KL:KINERGY), formerly known as Kejuruteraan Asastera Bhd, plans to place out up to 10% of its issued shares to third-party investors to raise up to RM79.75 million to finance its Perlis power plant and repay debts.

The private placement will involve up to 218.5 million shares, Kinergy said in a bourse filing on Friday. The estimated proceeds is based on an illustrative issue price of 36.5 sen per share — a discount of nearly 9% to its five-day volume weighted average market price of KAB shares up to Sept 18.

The investors have yet to be identified. Malacca Securities Sdn Bhd is the principal adviser and placement agent for the exercise.

Of the proceeds, Kinergy will allocate RM49.35 million (61.9%) to partially fund its equity portion for the development of the Eentier Perlis Power Plant.

It is jointly developing the 1,500 MW gas-fired combined-cycle gas turbine power plant in Simpang Empat with Thailand's B.Grimm Power Public Company Ltd.

Another RM30.00 million (37.6%) will be used to partly repay bank borrowings, which stood at RM267.9 million as at Sept 18, which it estimated would yield annual interest savings of RM2 million and lower the group's gearing from 0.90 times to 0.62 times.

The remaining RM400,000 will be used to defray estimated placement expenses.

It expects to complete the placement by the first quarter of 2027.

Kinergy shares ended 0.5 sen higher at 42 sen on Friday, giving the group a market capitalisation of RM917.73 million. The stock is up four sen or over 10% since the start of the year.