Kinergy Advancement Bhd’s proposed RM80mil private placement is seen by analysts as a timely funding move that supports the group’s expansion into power generation, particularly its planned 1,500-megawatt (MW) gas-fired power plant in Perlis.

RHB Research said the exercise provides investors with an opportunity to participate in the group’s potential upside from the new power plant. Part of the proceeds will also go to reduce borrowings.

“We view this as a good opportunity to ride Kinergy’s upside from the new power plant, as we expect management to sign the power purchase agreement in the first quarter of 2027. Kinergy is proposing to undertake a private placement of 219 million shares, making up 10% of its current share capital