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Advancecon Holdings Bhd proposes to place a private placement of up to 20% of its total share base in order to raise RM21.85 million to finance the development of a solar PV project under the Large Scale Solar 4 @ MEnTARI programme.
According to the Bursa Malaysia filing, the private placement will see the issuance of around 96.67 million shares to third-party investors. The issue price will be determined later. Advancecon had 483.37 million shares as of Jan 9, 2023.
Advancecon has earmarked RM21.74 million for the development of the solar PV power generating facility under LSS4. The remaining RM110,000 will be used to cover the estimated costs of the proposed placement.
Advancecon reported that LSS TPG Sdn Bhd, its indirect wholly-owned unit, had entered into a PPA on Aug 18, 2021, with Tenaga Nasional Bhd to design, build, own, manage and maintain a 26-megawatt solar energy generating plant in Kuala Langat (Selangor). In August 2022, the Energy Commission extended the PPA’s term by four years.
“As of Jan 9, the construction of the solar power plants has not begun. Construction of the solar power station is scheduled to begin in March 2023. It is expected that it will take approximately 10 months to complete.” The company stated, adding that the solar power facility is expected to be operational in the fourth quarter of the current year.