KUALA LUMPUR (Oct 10): Kejuruteraan Asastera Bhd plans to raise up to RM27.09 million via a private placement to third-party investors to be identified later, to fund the expansion plan of its customised energy efficiency solutions business, and future acquisitions.

The group said in an exchange filing today that the proposed placement entails the issuance of up to 70.57 million new shares, representing up to 20% of the total number of its issued shares.

The issue price of the placement shares will also be determined at a later date, based on a discount of not more than 10% to the five-day volume-weighted average market price of Kejuruteraan Asastera shares immediately preceding the price-fixing date.

Based on an indicative issue price of 38.39 sen apiece, Kejuruteraan Asastera expects the exercise to raise gross proceeds of RM27.09 million.

Of the total proceeds, Kejuruteraan Asastera plans to use RM17 million to fund the expansion plan of its customised energy efficiency solutions business, RM4.5 million for project costs and expenses, RM4.69 million for future acquisitions and investments, and RM900,000 for the corporate exercise expenses.

Barring any unforeseen circumstances and subject to authorities' approval, the group expects the proposed exercise to be completed by the fourth quarter of this year.

Kejuruteraan Asastera shares closed half a sen or 1.03% higher at 49 sen, for a market capitalisation of RM172.91 million. The counter saw some 457,500 shares traded.