JAKS Resources proposes placement to raise RM40.71 million
The proposed fundraising would allocate RM33.50 million to repaying credit facilities and RM5.91 million to working capital.
JAKS Resources Bhd plans to raise an estimated RM40.71 million through a private placement, with debt repayment and working capital as the intended uses. According to its bourse filing, the construction and energy group would issue up to 262.63 million new shares, equivalent to a maximum 10% of its total issued shares.
The company expects to save about RM2.37 million annually in interest by directing RM33.50 million towards partial repayment of credit facilities. It aims to lower bank borrowings to RM388.89 million from RM422.39 million recorded as at Oct 13.
Working capital would receive RM5.91 million, covering administrative expenses, directors’ fees and staff costs. Funds left over would pay the estimated expenses associated with the placement.
Third-party investors have yet to be identified. The fundraising estimate uses an illustrative share price of 15.5 sen, while the actual price remains unset. Its discount cannot exceed 10% against the five-day volume-weighted average market price immediately preceding the price-fixing date.
The group has engaged M&A Securities Sdn Bhd to advise on and arrange the placement. It is targeting completion by the fourth quarter of 2026.
On Oct 15, the stock finished at 15 sen after rising half a sen, or 3.45%, valuing the company at RM393.94 million.
