Citaglobal Bhd plans a private placement to accelerate renewable energy projects and complete its RM90mil Gebeng acquisition, with completion targeted in the second quarter of FY2026.
KUALA LUMPUR: Citaglobal Bhd has proposed to raise up to RM42.09 million via a private placement exercise to fund renewable energy expansion, complete its Gebeng land acquisition and strengthen working capital.
In a filing with Bursa Malaysia, the group said it intends to issue up to 46.77 million new shares — representing 7.05% of its enlarged share capital — to Berjaya Securities Sdn Bhd at a subscription price of 90 sen per share.
The placement price represents a marginal 0.55% discount to the last traded price of 90.5 sen. However, it is priced at a premium to key historical benchmarks, including a 1.16% premium to the five-day volume-weighted average price (VWAP) and a 7.04% premium to the 12-month VWAP.
Citaglobal And Gebeng Land Acquisition
Of the total expected gross proceeds, RM13.5 million will be allocated to the Gebeng land acquisition in Pahang. The sum will reimburse earlier payments and settle the remaining cash portion of the RM90 million acquisition, which was largely satisfied through the issuance of irredeemable convertible preference shares (ICPS).
A further RM18.5 million has been earmarked for expansion and investment in existing businesses, particularly renewable energy initiatives. These include acquiring controlling stakes in hydropower assets, development costs for a 200MW large-scale solar (LSS) project under the LSS PETRA 5+ programme in Kuantan, as well as a bio-compressed natural gas upgrading facility across Pahang, Kelantan and Terengganu.
Another RM8.6 million will be used for working capital, while RM1.49 million will cover expenses related to the private placement.
Berjaya’s Stake
Upon completion, Berjaya Securities is expected to hold an 8.66% stake based on the current issued shares, or 6.59% on a fully diluted basis assuming full conversion of all convertible securities.
As at Sept 30, 2025, Citaglobal has 12.37 million Warrants B, 85.09 million Warrants C, 2.4 million ICPS A and 69.90 million ICPS B outstanding. The proposed exercise is expected to be completed by the second quarter of financial year 2026.
Citaglobal said the private placement enables the group to raise funds expeditiously without incurring interest costs or principal repayment obligations associated with bank borrowings, thereby preserving cash flow.
As at Sept 30, 2025, the group’s outstanding order book stood at RM1.1 billion, while its property segment carries an estimated remaining gross development value of RM449 million.
Looking ahead, the group expects Malaysia’s construction sector to remain stable in 2026, supported by strategic investments and infrastructure rollouts under the 13th Malaysia Plan.
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