KUALA LUMPUR, Dec 16 — VSolar Group Bhd plans to undertake a private placement to raise an estimated RM10.89 million to fund its solar photovoltaic (PV) projects.

In a filing with Bursa Malaysia, VSolar said it planned to issue up to 245.19 million new shares, representing 10 per cent of its issued shares.

The proceeds of RM10.89 million is based on an illustrative issue price of 4.44 sen per placement share, which is a discount of 9.94 per cent to the five-day volume weighted average price of the shares up to and including the latest practicable date (November 26) of 4.93 sen.

"Based on the illustrative issue price, RM10.44 million of the proceeds will be utilised for working capital for solar PV solutions projects, while estimated expenses for the proposed private placement is RM445,000,” the solar PV solutions provider added.

The proposed placement is expected to be completed by the the second quarter of 2021.

As at November 26, the group’s cash and bank balances stood at RM43 million, which comprised the balance proceeds raised from earlier fund-raising exercises of RM36.1 million from a rights issue exercise that was completed on July 13 and RM6.9 million raised from a private placement exercise that was completed on November 18. — Bernama