KUALA LUMPUR (Oct 15): Diversified group PJBumi Bhd (KL:PJBUMI) is proposing the private placement of up 10% of its shares to raise RM31.1 million for existing and future contracts.
In a bourse filing on Thursday, the group said the placement will be made to independent third-party investor(s) to be identified later and may be implemented in tranches within six months of approval by Bursa Securities.
PJBumi said its annual general meeting on Dec 5, 2025 had granted the board a general mandate to implement the private placement. The mandate is in force until the next AGM.
The proposal comes about a week after Bursa Malaysia Securities Bhd approved PJBumi's application for a one-into-five share split, which will see its issued share capital of 82 million shares expand to 410 million shares worth RM44.5 million. PJBumi shareholders have to approve the share split at an AGM before it can be implemented.
This means the placement exercise could involve 8.2 million shares or 41 million shares, depending if the stock split is approved.
PJBumi said the price of the placement shares will not be at a discount of more than 10% to the five-day volume-weighted average price (VWAP) of the shares immediately before the price-fixing date.
From the proceeds, RM21.3 million is earmarked for the purchase of new drilling rigs, RM4 million to support a construction project in Sungai Petani and the remaining proceeds for working capital and expenses related to the private placement.
As at Oct 13, the group said it has a total unbilled order book of approximately RM120.9 million, comprising five projects in Malaysia and Indonesia across diversified revenue segments such as oil-and-gas products and services, waste management facilities, property development, as well as digital engineering and telecommunications.
PJBumi said the private placement allows it raise funds swiftly without incurring interest expense from bank borrowings.
However, the group admits that the placement will not resolve the its financial concerns but believes the funds will alleviate some of the pressure as the expenditure of the proceeds will support new revenue streams.
As at end-June 2026, PJBumi has cash and cash equivalents of RM151,000 with no bank borrowings.
PJBumi shares closed one sen or 0.24% lower at RM4.21 on Thursday, valuing the company at RM345.2 million.
The counter is up 57.1% over the past one year.