Kinergy Advancement plans RM66m private placement for RE projects and loan repayment

KINERGY Advancement Bhd aims to raise up to RM66.23 million through a private placement to finance renewable energy projects and repay loans.

The company plans to issue up to 198.63 million shares to independent third parties at a future-determined price.

Based on an illustrative price of 33.34 sen per share, Kinergy will raise RM66.23 million, with RM35.93 million allocated for renewable energy projects and RM30 million for reducing bank borrowings.

The remaining RM300,000 will cover placement expenses, the energy and engineering services firm told the bourse today.

Kinergy’s total bank borrowings stand at RM140.58 million, with RM79.17 million long-term and RM61.41 million short-term.

The RM30 million loan repayment is expected to save RM2.05 million in annual interest.

Kinergy’s shares closed down 1 sen or 2.7% at 36.5 sen today, giving the company a market value of RM725 million. –TMR