Mudajaya sets issue price of placement shares

PETALING JAYA: Construction outfit Mudajaya Group Bhd’s board of directors has fixed the issue price for the placement of 53 million shares representing 9.84% of the issued shares of the company at RM1.15 per placement share.

RHB Investment Bank Bhd said in a stock exchange filing on behalf of the company that the issue price represents a premium of approximately 7.42% to the five-day volume weighted average market price of Mudajaya shares up to and including Sept 20, being the last market day immediately preceding the price-fixing

Mudajaya share.

The company said in a July stock exchange filing that the funds raised from the placement exercise will be used to fund the construction of a new power concession asset that was awarded to the company on Dec 21 last year.

The award was from the Energy Commission to undertake the development of a large-scale solar photovoltaic plant with a capacity of 49 MW in Kuala Kangsar, Perak. date, of RM1.0706 per

Under the agreement, the company will undertake the project on a build-own-operate basis.

The proceeds from this private placement will be utilised to partially fund the construction cost of the project.

Construction of the plant commenced in July and the company estimates that the plant will be completed next June.

The remainder of the funds will be set aside for the company’s working capital and for paying off expenses for this exercise of RM150,000.