Nextgreen Global plans RM121m private placement for Green Technology Park development

NEXTGREEN Global Bhd is planning for a private placement, targeting up to 10% of its issued shares to be allocated to unidentified third-party investors. 

The proposed issue price for it’s placement shares, set at 90 sen for illustrative purposes, would yield a discount of around 6.89% compared to the 5-day volume-weighted average price (VWAP) of Nextgreen shares leading up to and including the last practicable date (LPD), which stands at 96.66 sen.

The anticipated proceeds from this private placement, around RM120.8 million, are earmarked for its Green Technology Park (GTP) project and working capital needs.

The GTP project, located in Pekan, Pahang, focuses on green technology and aims to address sustainability concerns. 

The development includes phases like pulp and paper mills, a biomass power plant, and more. 

It’s noteworthy that the group intends to allocate up to RM70 million from the proposed private placement to fund the development costs specifically for the GTP project

The allocation of proceeds will depend on the actual funding requirement at the relevant development phases, ensuring efficient utilisation for growth. 

The Group anticipates that the funding will positively impact its financials from the financial years ending June 2024 onwards. — TMR