KUCHING: AIZO Group Bhd has proposed to undertake another fund-raising exercise via private placement and renounceable rights issue that has the potential to raise up to RM195.6 million to finance, among others, its large-scale solar and current construction projects.
The proposed private placement entails the issuance of up to 763,883,000 new ordinary shares, representing up to 30 per cent of AIZO’s total number of issued shares (excluding treasury shares, if any) to the company’s certain directors and major shareholders as well as independent third-party investor(s) at an issue price to be determined later.
The propose renounceable rights issue entails up to about 3.31 billion new shares on the basis of one rights share for every one existing share held by shareholders on an entitlement date, together with up to about 1.655 billion free detachable warrants on the basis of one warrant for every two rights shares subscribed.
Simultaneously, AIZO has proposed a reduction of RM75 million of its share capital, the company said in a filing with Bursa Malaysia.
AIZO said it intends to place out 100 million shares (16.98 per cent of the total size of proposed private placement) to major shareholder/executive chairman, Dato Abang Abdillah Izzarim Tan Sri Abang Abdul Rahman Zohari, 15 million shares (2.55 per cent) to executive director, Ahmad Rahizal Dato Ahmad Rasidi, and also 15 million shares to executive director of finance and technology, Emma Yazmeen Yip Mohd Jeffry Yip and the remaining 458,981,000 shares (77.92 per cent) to independent third-party investors.
Based on the indicative issue price of RM0.061 per placement share, this will raise about RM35.928 million (minimum scenario) and up to RM46.597 million (maximum scenario).
The issue price of each tranche of the placement shares will be determined separately and will be priced at not more than 20 per cent discount to the 5-day volume weighted average market price (5D-VWAP) of AIZO shares up to and including the last trading day prior to the price fixing date.
“The board (of directors) is of the opinion that the maximum discount of 20 per cent to the 5D-VWAP of AIZO shares will provide the company with sufficiently attractive price to entice the place(s) to subscribe for the placement shares,” it added.
If the minimum amount of RM35.928 million is raised, the company will allocate RM31 million as capital injection required for the development of a 99.99 megawatts of alternating current (MWac) large scale solar facility located in Kampar, Perak (LSS5 project).
“The capital injection represents the group’s equity contribution in accordance with the shareholding in Wawasan Demi Sdn Bhd, a 65 per cent-owned subsidiary of Coral Energy Sdn Bhd,a wholly-owned subsidiary of the company.
“The funds will be utilised progressively to meet project equity calls, including but not limited to, payments for project development costs, procurement of equipment and materials; engineering, procurement, construction and commissioning obligations; and other related project expenses necessary to achieve financial close and subsequently construction milestones and other miscellaneously expenses,” said AIZO.
Another RM4.15 million from the proceeds will be utilised for working capital for the group’s existing business.
If the maximum amount of RM46,597 million could be raised,RM40 million will be utilised as capital injection for the LSS5 project and RM5.59 million for working capital.
On the proposed rights issue, AIZO said the board of directors intend to fix the issue price of AIZO shares at a discount of not more than 25 per cent of the theoretical ex-all price (TEAP) of AIZO shares, to be calculated based on the 5D-VWAP of AIZO shares up to and including the last trading day prior to the price-fixing date.
The indicative issue price is the proposed rights share is RM0.045 each. And based on this price, the company is expected to raise RM10.945 million (minimum scenario); base case scenario (without placement) RM88.347 million; base case scenario (with placement) RM114.851 million. The amount expected to be raised at the maximum scenario is RM148.957 million.
If the minimum amount is raised, the company intends to utilise RM4.9 million to fund for current construction projects, RM2.8 million for future construction projects and RM2.365 million for working capital.
If the maximum amount can be raised, RM53.3 million will go to fund current construction projects,RM40 million for future construction projects, RM39.777 million for working capital, RM12.5 million for investment in new businesses and RM2.5 million to finance digitalisation and process transformation.
AIZO’s current construction projects include the Selinsing gold mine project, high-rsie residential project in Jalan Pantai Dalam, Kuala Lumpur, road and drainage work for M Nova project and external infrastructure works in Serendah, Hulu Langsat, Selangor.
Currently, AIZO group is principally involved in the provision of specialised civil engineering services, manufacturing and trading of bituminous products, development, operation and transmission of solar power and provision of manpower and maintenance services as well as rental of machinery.
On the proposed share capital reduction, AIZO said the credit of RM75 million arising from the cancellation of shares will be used to set off the accumulated losses of the company while any remaining balance will be credited to the company’s retained earnings.
As at June 30, 2025, the group’s accumulated losses amounted to RM46.26 million.
AIZO will convene an extraordinary general meeting (EGM) to obtain shareholders’ approval of the proposed private placement, rights issue and share capital reduction.
Subject to all approvals obtained, the company expects the various proposals to be completed by second quarter of 2026.
