Cypark sets private placement price at 38 sen per share to raise RM68m

KUALA LUMPUR (Dec 28): Cypark Resources Bhd has fixed the issue price of its private placement exercise at 38 sen per share to raise about RM68 million, which is lower than what it had planned earlier.

In a filing with Bursa Malaysia on Wednesday (Dec 28), the company said the issue price represents a discount of almost 8% to the volume-weighted average price of the units for the five market days up to and including Dec 27 of 41.27 sen apiece.

Shares in Cypark settled at 46.5 sen at the market break on Wednesday. On a year-to-date basis, its share price has declined almost 49%.

Cypark’s private placement comprises up to 178.94 million new shares, representing 30% of its issued shares.

In a filing on Nov 8, Cypark had indicated that the group was aiming to raise between RM72.43 million and RM73.36 million from the placement.

The bulk of proceeds from the cash call has been earmarked for working capital for the development of the Large Scale Solar 2 (LSS2) floating solar photovoltaic projects at Danau Tok Uban in Kelantan.

It also plans to allocate about RM22 million of the proceeds of about RM22.87 million as a working capital for the solid waste modular advanced recovery and treatment waste-to-energy (SMART WTE) plant at Ladang Tanah Merah in Negeri Sembilan.

The two projects have been behind schedule for a while. The initial targeted commercial operation date (COD) for the floating solar plant project was in December 2021. It was then delayed to May, subsequently to September, and is now slated for May 2023.

Meanwhile, the waste to energy project had also missed its latest targeted COD three months back in September.

The proposed placement is expected to be completed in the first quarter of 2023.

The last private placement exercise undertaken by Cypark was in December 2021, from which the company raised RM97 million gross proceeds, involving the issuance of 20% of the total number of issued shares, for the development cost of the solar power plant facility and partial repayment of bank borrowings.