Mudajaya ... Sept09

It is looking at raising additional capital, most likely through a private placement, to increase share liquidity and further shore up its capital base.

As of the end of the second quarter 2009, it still had net cash of RM130 million, which is enough for them to start new projects.

Mudajaya has an outstanding capital base of about 374 million shares, with only about 104.44 million or 27.8% in free float. Its market capitalisation was RM1.25 billion based on yesterday’s closing price of RM3.34.

Among its major shareholders, privately held Dataran Sentral (M) Sdn Bhd has a 26.75% stake, while Mulpha Holdings Bhd and Lembaga Tabung Haji hold 23.4% and 10%, respectively. Another private entity, United Flagship Sdn Bhd, holds 9.83%.

On a meeting with CIMB Investment Bank which The Edge Financial Daily learnt took place two weeks ago, Ng denied that it was a briefing to prepare for the share placement, saying that it was to update analysts on the company’s ongoing projects and future plans.

It confirmed that it had submitted proposals for some of the big projects that the government was expected to roll out before year-end, including the RM7 billion Klang Valley LRT line extension.

It was in the midst of bidding for additional independent power producer (IPP) projects in India. Mudajaya’s 26%-owned Indian associate, RKM Powergen Pvt Ltd, is undertaking a RM5 billion coal-fired power plant project in the Janjgir-Champa district of Chhattisgarh, India. Phase 1 of the project, which is now 20% completed, was being financed with internally generated funds, according to Ng.