Citaglobal Bhd To Raise RM42.09 Million For Renewable Energy Expansion And Pahang Land Acquisition

Malaysia-based Citaglobal Bhd has announced a plan to raise about RM42.09 million through a private placement exercise to support its expansion into renewable energy and complete a key land acquisition in Pahang. In a filing with Bursa Malaysia, the company said it will issue up to 46.77 million new shares to Berjaya Securities Sdn Bhd at a price of 90 sen per share. The offer price is slightly below the recent market price but higher than the company’s long-term historical average.

The funds raised will be used for several important purposes. Around RM13.5 million will go toward settling the remaining cash payment for the RM90 million acquisition of land in Gebeng, Pahang. Most of the land deal has already been financed through the issuance of preference shares. This latest funding will help Citaglobal complete the transaction. By securing the land, the company strengthens its asset base and creates opportunities for future industrial or energy-related developments in the area.

A major portion of the proceeds, about RM18.5 million, will be invested in the company’s renewable energy projects. These include the development of a 200MW large-scale solar plant in Kuantan. The company is also planning to acquire controlling stakes in hydropower assets. In addition, it intends to invest in bio-compressed natural gas facilities across the East Coast states of Pahang, Kelantan, and Terengganu. Through these projects, Citaglobal aims to diversify its business and contribute to Malaysia’s transition toward cleaner and more sustainable energy sources.

The remaining funds from the share placement will be used for working capital and to cover expenses related to the private placement exercise. By choosing a private placement instead of taking bank loans, the company can raise money quickly without paying interest or facing immediate repayment pressure. This approach helps maintain stable cash flow while supporting growth plans.

Citaglobal currently has an order book valued at RM1.1 billion and sees positive prospects in Malaysia’s construction and energy sectors. The company expects to complete the private placement by the second quarter of 2026. With this move, Berjaya Securities will become a significant shareholder. The fresh capital is expected to improve liquidity and enable Citaglobal to move forward with key infrastructure and green energy projects aligned with national development goals.