The meteoric ascent of Jentayu Sustainables Berhad (“JSB”) share price over the past year has undoubtedly captivated the attention of discerning investors. This transition from a construction-oriented business to a renewable energy enterprise has been nothing short of electrifying, attracting significant investor participation.

A New Dawn, the company’s road to transformation. If you are not familiar with JSB, you might be wondering if now is an opportune moment to enter the fray. To provide an informed perspective, it's crucial to retrace the company's steps and examine its recent developments.

Several Strategic Acquisitions as Catalysts. Back in September 2021, JSB inked a series of Share Sales Agreements (SSAs) to acquire Solar and Hydro Assets. These acquisitions were extensive, encompassing complete equity in Jentayu Solar Sdn. Bhd for RM11.1 million, as well as full ownership of Senja Optima and redeemable preference shares in Telekosang Hydro One Sdn. Bhd. and Telekosang Hydro Two Sdn. Bhd. The total purchase consideration for these assets stood at RM93.6 million.

Adding another feather to its cap, JSB acquired 100% of the Junior Bonds in Telekosang Hydro One Sdn. Bhd., amounting to RM38.1 million.

Extending Timelines and Amplifying Ambitions. Fast-forward to April 2023, the company declared an extension of the Completion of Conditions Precedent (CP) Fulfillment Date for the SSAs to 31st March 2024. This extension allows JSB additional time to seamlessly integrate its newly-acquired Solar and Hydro Assets into its burgeoning renewable energy business segment.

Moreover, a second supplementary agreement, announced in July 2023, underlined JSB's commitment to acquiring the remaining Preference Shares and Junior Bonds related to its Hydro Assets.

Venturing into Power of Capital - Private Placement and Investment Strategy. Between September 2022 and July 2023, JSB successfully listed shares across four tranches, totalling 96,942,100 shares. This culminated in the completion of the Proposed Private Placement of up to 142,627,665 shares to third-party investors. These achievements were sanctioned at the General Meeting on 27th July 2022.

The company has earmarked the funds raised for an array of projects and investments. These include pre-development expenditures for Project Oriole, prospective investments in renewable energy projects, working capital, healthcare division expansion, and other related outlays. The total estimated proceeds range from RM39.7 million to RM58.4 million and have been allocated specific deployment timelines.

Concluding Thoughts. JSB's well-considered strategies, strong corporate governance, and subsequent market validation serve as a robust affirmation of its commitment to sustainability and growth. Its unswerving focus on renewable energy suggests that JSB is well-positioned to make a significant impact on the future of the sector.

In light of the fundamental strength demonstrated through strategic acquisitions, the uptick in JSB's share price appears to be well substantiated. For investors with an eye on renewable energy, adding JSB to your portfolio could be a judicious decision.