KUALA LUMPUR (March 11): Fast Energy Holdings Bhd plans to raise up to RM4.71 million through a private placement of up to 78.51 million new shares or 10% of its total issued shares, at issue price to be determined later. 

The proceeds from the proposed private placement will be used mainly to fund the working capital of the petroleum trading business, as the company has already entered into contracts for its petroleum products. 

The indicative issue price of the placed shares is assumed to be six sen per share, representing a discount of approximately 9.91% to the five-day volume weighted average price of Fast Energy's shares up to and including the latest practicable date of 66.6 sen per share. 

In a bourse filing on Friday (March 11), Fast Energy stated that its petroleum trading activities are capital intensive, as the group must have sufficient financial resources to secure and purchase the petroleum products needed to supply customers such as companies in the shipping or bunkering industries.

On March 23 last year, the company secured a contract worth RM540 million from Huang Fan Sdn Bhd for the supply of marine fuel oil. On March 12 and June 2 the same year, it also received contracts worth RM2.22 billion and RM1.46 billion respectively from Wise Marine Pte Ltd for the supply of low and high sulphur fuel oil and low sulphur marine gas oil. 

Fast Energy is engaged in the manufacture of rubber sheets for mould cleaning and the trading of LED epoxy encapsulation materials; the provision of bunkering services, the chartering of vessels and the trading of petroleum and raw materials; as well as the development of solar products.

The exercise, which is expected to be completed by the second quarter of 2022, is not expected to have any material effect on Fast Energy’s earnings and earnings per share for the financial year ending Dec 31, 2022. 

Fast Energy’s share price settled unchanged at six sen on Friday, for a market capitalisation of RM34.77 million.