KUALA LUMPUR (Jan 4): Shares in Cypark Resources Bhd jumped 8.65% in active trade early on Wednesday (Jan 4) after it was reported that Jakel Group is expected to surface as the single largest shareholder in the renewable energy company.
At 9.10am, Cypark rose 4.5 sen to 56.5 sen with 17.43 million shares done.
On Wednesday, The Edge cited a market source as saying that Jakel’s investment arm Jakel Capital could be taking up the whole block of Cypark’s private placement exercise, involving 30% of the total number of issued shares.
Another source, however, said Jakel Group will only be subscribing to half of the private placement shares — representing a 15% stake of the company — while the remaining half block to be taken up by another friendly party.
“The capital injection by Jakel will provide a lifeline to Cypark,” the source said.
At press time, the representative of Jakel and Cypark founding CEO Datuk Daud Ahmad have yet to respond to The Edge’s queries.
Last week, Cypark fixed the issue price of its private placement exercise at 38 sen apiece to raise about RM68 million, which is lower than what it had planned earlier.
The placement comprises up to 178.94 million new shares, representing up to 30% of the group's issued shares.