AHMAD Zaki Resources Bhd (AZRB) has announced a private placement to raise up to RM14.7 million by issuing 10% of its shares to selected third-party investors.

According to the group’s bourse filing dated Nov 1, the move was aimed at funding the company’s engineering and construction (E&C) division, with a focus on its largest ongoing project, the East Klang Valley Expressway (EKVE).

The move will see the proceeds directed towards the division’s working capital requirements, specifically for purchasing building materials and settling payments to subcontractors involved in the EKVE project, which is slated for completion by December 2025.

In light of its high gearing ratio, AZRB said it opted for equity-based funding to reduce dependence on bank borrowings, helping ease interest-related costs that impact the bottom line.

The group said it aimed to strengthen its finances by diversifying funding, allowing more flexibility to meet operational and project needs.

AZRB share price was flat at 22 sen on Friday, giving it a market capitalisation of RM145 million. — TMR