In this article, you will get all information regarding Jaks Resources Proposes Private Placement Of 292.9 Million New Shares

JAKS Resources Berhad has proposed to undertake a private placement of up to 292.9 million new shares, representing 10% of the total number of existing shares at an issue price to be determined and announced at a later date upon receiving all the relevant approvals.

Under a ‘maximum scenario’, the company said it will issue 292.9 million new shares which will raise RM74.4 million in proceeds, based on an illustrated issue price of 25.4 sen per placement share. JAKS has earmarked approximately RM43 million for the repayment of credit facilities, which will reduce its net gearing ratio from 0.28 times. Another RM30.7 million and RM0.7 million will be for working capital purposes and expenses related to this proposed private placement exercise, respectively.

The group has entered into a call option agreement with Kenanga Investment Bank Berhad for up to 209.03 million placement shares.

COn deciding on the action, Chief Executive Officer Andy Ang Lam Poah said, “We take this opportunity to strengthen our financial position and to be in a better position to secure more projects, particularly in the Renewable Energy space. This comes at a time of rising interest rates recession risks and global uncertainties ahead. The repayment of borrowings will help reduce the interest expense by approximately RM2.8 million per year.”

Jaks Resources Proposes Private Placement Of 292.9 Million New Shares

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