Meta Bright plans private placement to raise RM21m for renewable energy and lending expansion
META Bright Group Bhd (MBGB) has proposed a private placement of up to 253.1 million new shares to raise gross proceeds of RM21 million.
The exercise, which represents 10% of the company’s existing issued share capital and is expected to be completed by the third quarter of 2025.
The funds raised will be primarily channelled into expanding MBGB’s renewable energy and energy efficiency businesses, which continue to gain traction.
The company has secured 28 solar projects and four energy efficiency contracts across commercial, industrial, and government sectors nationwide.
Approximately RM8.75 million, or 41.7% of the proceeds, has been earmarked for capital expenditure and development costs tied to ongoing and future energy-related initiatives.
Another RM8 million will be used for general working capital and daily operating expenses, while RM2 million is allocated for the repayment of a USD-denominated term loan, which will also help reduce the group’s gearing ratio slightly from 0.48 times to 0.45 times.
An additional RM2 million will be channelled into MBGB’s money lending business through its licensed subsidiary Meta Bright Capital Sdn Bhd, with the aim of expanding its loan portfolio.
Assuming the placement shares are priced at 12.34 sen per share – the five-day volume weighted average price as of the latest practicable date – MBGB’s enlarged share capital will increase to about 2.70 billion shares.
While the exercise will result in an immediate earnings dilution, the group expects the funds raised to contribute positively to long-term profitability once the benefits of the new investments are realised.
MBGB remains optimistic about the prospects of its renewable energy and money lending ventures, especially in light of strong government policy support for energy transition and increased credit demand among SMEs.
The group said it will continue to pursue strategic opportunities while managing its financial performance with caution.