PJBumi proposes private placement to raise RM31.1 million for contracts and equipment

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PJBumi RM31.1 million private placement

Highlights

PJBumi Bhd proposes a private placement of up to 10% of its shares to raise up to RM31.1 million, with RM21.3 million for new drilling rigs and RM4 million for the Sungai Petani project.
The proposal could involve 8.2 million or 41 million shares, depending on shareholder approval of the proposed one-for-five share split.
As of 13 Oct, PJBumi had an unbilled order book of RM120.9 million, RM151,000 in cash, no bank borrowings, and a market capitalisation of RM345.2 million despite its shares falling to RM4.21.

This article was translated from the original. Read the original version by our correspondent here.

Placement details and use of proceeds

According to The Edge Malaysia, as reported in a Bursa Malaysia filing on Thursday, PJBumi Bhd is proposing a private placement of up to 10% of its shares to independent third-party investors to be identified later. The exercise may be carried out in stages within six months after approval from Bursa Securities, and the company said this method enables it to raise funds quickly without incurring interest expenses from bank borrowings.

According to the company, a general mandate to undertake the private placement was approved at its annual general meeting on 5 Dec 2025 and remains valid until the next annual general meeting. The placement shares will not be priced at a discount of more than 10% to the five-day volume-weighted average price preceding the price-fixing date.

Of the targeted RM31.1 million in proceeds, RM21.3 million has been allocated for the purchase of new drilling rigs, RM4 million to support a construction project in Sungai Petani, while the remaining funds will be used for working capital and expenses related to the implementation of the placement.

Implications for capital and financial position

The proposal comes about a week after Bursa Malaysia Securities Bhd approved PJBumi's application for a one-for-five share split. If implemented following shareholder approval, the company's issued share capital will increase from 82 million shares to 410 million shares, with a value of RM44.5 million.

This means the placement exercise could involve 8.2 million shares or 41 million shares, depending on whether the proposed share split is approved. PJBumi also acknowledged that the placement will not fully address its financial concerns, but believes the proceeds can ease some of the pressure, as the spending supports new revenue streams.

As of 13 Oct, the group had an unbilled order book of approximately RM120.9 million across five projects in Malaysia and Indonesia, spanning oil and gas products and services, waste management facilities, property development, and digital engineering and telecommunications. At the end of June 2026, PJBumi had RM151,000 in cash and cash equivalents with no bank borrowings, while its shares closed one sen lower at RM4.21 on Thursday, giving it a market capitalisation of RM345.2 million; the counter is still up 57.1% over the past year.

In our earlier coverage of Excel Force MSC Bhd's proposal to raise up to RM10.66 million through a new share issuance, we explained that the move came as the company's cash position deteriorated, with part of the proceeds allocated to support projects worth approximately RM49.65 million. The same article also highlighted major ownership changes and a board reshuffle following the emergence of new substantial shareholders, including governance implications and the risk of breaching Islamic bond covenants linked to changes in shareholdings within related groups.

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