KUALA LUMPUR (Oct 12): ACE Market-listed PUC Founder (MSC) Bhd (PUCF) has revised its renounceable rights issue of irredeemable convertible unsecured loan stocks (ICULS) scheme to raise up to RM83.9 million, down from RM127.59 million previously.

It plans to use the money to fund capital expenditure for its 9.5-megawatt (MW) power solar photovoltaic (PV) power project.

In a filing with Bursa Malaysia today, the group said the revised scheme now entails the proposed renounceable rights issue of up to RM83.9 million nominal value of three-year, 4% ICULS on the basis of 28 5 sen nominal value of the rights ICULS for every 20 existing PUCF shares, with up to 419.51 million warrants-B on the basis of seven warrants-B for every 28 rights ICULS subscribed.

In its initial announcement on Aug 4, the group had proposed to issue two 5 sen rights ICULS for every one share held, as well as one-for-eight free warrants with an exercise price of 10 sen, which would raise up to RM127.59 million.

Based on the revision, the proposed rights Issue of ICULS with warrants is expected to raise gross proceeds of RM28 million and RM83.9 million under minimum subscription level and maximum subscription level, respectively.

"The major shareholder of PUCF, Redhot Media International Ltd in an undertaking letter, said that it undertakes to subscribe the minimum subscription level, which is RM28 million nominal value of rights ICULS," said PUCF in a statement.

"This undertaking shows that the major shareholder is committed and confident on the future planning and development of PUCF’s new business," it added.

PUCF's group managing director Cheong Chia Chieh said the group had revised the ICULS scheme, as a result of recent market sentiment, which had caused the market price of PUC shares to be volatile.

“The revision also entails more free warrants-B attached with the rights ICULS subscribed.

“Due to the recent depreciation of the ringgit to the US dollar, the capex, such as solar panels which are derived based on US dollar, is expected to increase.  Taking this into consideration, we need to restructure our expansion plans, where we opt for a more flexible approach,” he said.

The proposed rights issue of ICULS with warrants will fund the constructions of several solar PV plants, ranging from a minimum capacity of 3MW to a maximum of 9.5MW.

“This fund raising exercise would allow the management to secure more power project deals and renewable energy quotas in the next three years,” said Cheong.

The group will also procure funding through internal funds and/or bank borrowings, when necessary. The proposals are expected to be completed by the first quarter of  2016.

PUCF shares closed up 0.5 sen or 5% to 10.5 sen today, bringing its market capitalisation to RM111.9 million.

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