KUALA LUMPUR: KJTS Group Bhd’s plan to undertake a special issue of up to 102 million new shares to Bumiputera investors, is expected to generate around RM168 million if fully subscribed at RM1.65 per share.
CIMB Securities said KJTS plans to use the proceeds with 60 per cent allocated for expanding its cooling energy (CE) segment, 36.1 per cent for working capital, 3.8 per cent for loan repayments, and 0.1 per cent for other purposes.
It added that the CE allocation will go towards new projects still being finalised, which have not yet been incorporated into its financial year 2025 (FY25) to FY27 earnings per share (EPS) projections.
The research house noted that on a fully diluted basis, KJTS’ enlarged share base will increase to 714 million shares, including 25.5 million shares under the employee share option scheme.
“This would translate into an estimated 5.7 to 6.8 per cent dilution of FY26–FY27 EPS if the exercise is completed by Dec 31, factoring in net interest income from the proceeds at an assumed annual rate of three per cent.
“As a result, our theoretical target price would fall to RM1.76 from RM1.85,” it said.
CIMB Securities maintained its FY25–FY28 EPS forecasts, “Buy” rating, and target price of RM1.85.
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