KUALA LUMPUR (March 5): Nextgreen Global Bhd has proposed a private placement of up to 102.57 million shares, representing 10% of its issued share capital, to yet-to-be-identified third-party investors with the issue price to be determined later.
Based on an illustrative issue price of 90 sen per placement share, the exercise is expected to raise some RM89.62 million, at most RM92.32 million, the group said in a bourse filing on Tuesday.
Nextgreen, which is involved in production of green technology, sustainability and renewable energy, among others, said RM70 million of the placement proceeds will be used to fund its green technology park (GTP) projects, while the remainder will be allocated for working capital, and to defray the proposed private placement expenses.
According to the group, the GTP is located in Pekan, Pahang, developed by its wholly owned subsidiary Ultimate Ivory Sdn Bhd.
It involves the use of science and technology to create products or services that are environmentally friendly through improving operational performance, while reducing costs, energy consumption, waste and negative effects on the environment.
In line with the development of the GTP project, Nextgreen expects its working capital requirement to increase, adding that the group intends to allocate the balance of the proceeds for working capital.
Nextgreen expects the placement to be completed in the third quarter of 2024.
TA Securities has been appointed as the principal adviser and placement agent for the exercise.
Shares in Nextgreen settled one sen or 1.04% lower at 95 sen on Tuesday, giving the group a market capitalisation of RM941.02 million.
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Source: EdgeProp.my
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