Cypark proposes RM108mil private placement to fund solar project

KUALA LUMPUR (Bernama) — Cypark Resources Bhd has proposed to undertake a private placement of up to 105 million new ordinary shares, representing up to 20% of the total number of issued share in the company.

In a filing with Bursa Malaysia today, Cypark Resources said the issue price would be determined and announced later.

“Based on the illustrative issue price of RM1.03 per placement share, the proposed private placement is expected to raise gross proceeds of up to RM108.15 million,” it said.

It said the utilisation of the funds raised from the proposed placement would further expand the company’s competitive advantage and increase its foothold as a contributor to the government initiatives to increase renewable energy (RE) production.

“The proceeds will be used to complete the construction of the solar PV (photovoltaic) energy generating facility with 173 MWp (megawatt peak) LSS3 project in Marang, Terengganu,” it said.

It said upon completion of the facility, as well as the company’s 25 MW waste-to-energy plant in Tanah Merah, Negeri Sembilan, Cypark Resources would increase its ownership of RE assets capacity to 245 MWp from the current operating capacity of 47 MWp.

Cypark Resources said in addition to its own assets, the company would be operating a total of 150 MWp solar assets, including the 100 MWp floating solar by middle 2021 under its engineering, procurement and construction plus operation and management long term contract.

It added that in total, Cypark Resources is expected to have secured capacity of solar assets built, owned or operated by the company of over 395 MWp by the financial year ending Oct 31, 2022.