HeiTech Padu plans RM43.7mil fundraising for NIISe project

The Star

09-05-2025

KUALA LUMPUR: Heitech Padu Bhd plans to raise up to RM43.7mil through a private placement of new shares, mainly to fund the National Integrated Immigration System (NIISe) project and for working capital needs.
In a filing with Bursa Malaysia today, the tech company said the fundraising will follow a 1-for-4 bonus issue involving 27.84 million new shares, which will increase its share capital from 111.35 million to 139.18 million shares.
'The proposed private placement will entail the issuance of up to 27.8 million new shares, representing up to 20% of the enlarged total number of issued shares after the completion of the proposed bonus Issue,' it said.
RM35mil of the proceeds will be allocated to fund the project cost for the NIISe project, 'particularly in the initial stages of design and planning as well as infrastructure and hardware procurement', while about RM7.3mil will be used for working capital and RM1.4mil for expenses.
The NIISe project, valued at RM892.2mil, began on Oct 18, 2024 and covers a period of 60 months until Oct 17, 2029.
It aims to replace the Malaysian immigration system with a 'more modern and centralised platform' covering visa applications, border control and foreign worker administration, HeiTech Padu said.
It added the placement shares are expected to be priced at a discount to the underlying share.
This latest fundraising plan follows a previous private placement in July 2024 that raised RM18.9mil, mainly for working capital, and has since been fully utilised.
Separately, HeiTech Padu is proposing to diversify into renewable energy (RE), citing earnings potential from a recently secured RM2.5bil hydroelectric EPCC contract from TNB Power Generation Sdn Bhd (TNB Genco), in partnership with Voith Hydro GmbH & Co KG.
HeiTech Padu's portion of the contract is valued at RM903mil, with works commencing March 31, 2025 and running up to 99 months until 30 June 2033.
'Pursuant to the above, the board envisages that the business of development, ownership, operation and maintenance of RE power plants as well as related engineering, procurement, construction and commissioning (EPCC) services in relation to energy solutions will become a major contributor to the group's earnings going forward,' it said.
The company has been involved in the renewable space since acquiring Duta Technic Sdn Bhd in 2015 and later setting up HeiTech Eco Energy Sdn Bhd in 2018.
It noted the diversification aims to reduce its reliance on ICT contracts, which have been impacted by low public sector spending and rising competition.
'To mitigate these risks and ensure long-term sustainability, the group intends to undertake the proposed diversification to diversify its existing business for additional revenue and income stream.'
Shareholders' approval for the diversification will be sought at an upcoming extraordinary general meeting.