AIZO Group Berhad (“AIZO” or the “Company“), has received approval from Bursa Malaysia Securities Berhad (“Bursa Securities”) for a series of corporate exercises aimed at strengthening its balance sheet and supporting future growth initiatives.
The approved proposals include private placement, rights issue with free warrants, share capital reduction, as well as allocations to investors and key management, forming a comprehensive capital restructuring and fundraising exercise (collectively, the “Proposals”).
With Bursa Securities’ approval now secured and subject to the approval from the existing shareholders of AIZO at an extraordinary general meeting to be convened, AIZO is now allowed to unlock multiple funding avenues, including the issuance of up to 763.9 million placement shares and over 3.31 billion rights shares, alongside free warrants, providing flexibility to raise capital while broadening shareholder participation.
The Proposals also include allocations to strategic and internal stakeholders, aligning key parties with the Company’s long-term growth trajectory.
The proceeds raised from the proposed private placement are intended to be primarily utilised for the Company’s capital injection into the Large Scale Solar 5 (“LSS5”) project, which was announced on 28 April 2025 following the formalisation of the Power Purchase Agreement with Tenaga Nasional Berhad.
This represents a key milestone in AIZO’s expansion into the renewable energy sector. Barring unforeseen circumstance, the said LSS5 project is expected to contribute to future earnings visibility of AIZO and its group of companies moving forward.
This development comes at a pivotal time as AIZO accelerates its expansion across infrastructure, renewable energy and emerging business segments. The LSS5 project represents a key strategic initiative for the Company, supporting its expansion into the renewable energy sector while providing long-term earnings visibility.
The proposed capital exercises are expected to provide the Company with the financial capacity to fund its ongoing projects, with a key focus on advancing the LSS5 project, while also strengthening the Company’s financial flexibility and capital structure.
Dato’ Abang Abdillah Izzarim, Executive Chairman of AIZO, commented,
“The approval from Bursa Securities marks a step forward in executing our capital strategy. These Proposals are designed not only to strengthen our balance sheet, but also to equip AIZO with the financial flexibility required to support our next phase of growth.
As we expand our presence in areas such as renewable energy and infrastructure, having the right capital structure is critical. The LSS5 project is a key growth driver for the Company, and this fundraising exercise will enable us to execute it effectively while positioning AIZO for sustainable long-term value creation.”
The inclusion of warrants in the proposed rights issue provides an added incentive to the entitled shareholders to subscribe for the rights shares, while the share capital reduction exercise is intended to rationalise the Company’s capital base.
Upon completion, the Proposals are expected to enhance AIZO’s capital position and support its transition towards more sustainable and scalable earnings streams.
The implementation of the Proposals remains subject to shareholders’ approval and compliance with relevant regulatory requirements. Looking ahead, AIZO remains focused on executing its strategic priorities while strengthening its financial foundation to support long-term value creation.
For more information, visit https://aizo.com.my/
