Proposals to Support LSS5 Project, Construction Pipeline, Working Capital and Digitalisation Initiatives
KUALA LUMPUR, 29 MAY 2026 – AIZO Group Berhad (“AIZO” or the “Company“), today announced the successful conclusion of its Extraordinary General Meeting (“EGM”), with shareholders providing strong support for the Company’s proposed corporate exercises aimed at strengthening its capital base, improving financial flexibility and supporting its next phase of growth.
At the EGM, shareholders approved the resolutions relating to AIZO’s proposed private placement, proposed allocations of placement shares to selected Directors, proposed share capital reduction, and proposed renounceable rights issue with free detachable warrants.
The approval gives AIZO the mandate to proceed with the issuance of up to 738.56 million new ordinary shares under the proposed private placement, representing up to 30.00% of the Company’s total issued shares, excluding treasury shares. The proposed private placement includes allocations of up to 100.00 million placement shares to Executive Chairman Dato Abang Abdillah Izzarim Bin Tan Sri Datuk Patinggi Abang Haji Abdul Rahman Zohari, up to 15.00 million placement shares to Executive Director Ahmad Rahizal Bin Dato’ Ahmad Rasidi, and up to 15.00 million placement shares to Executive Director of Finance and Technology Emma Yazmeen Yip Binti Mohd Jeffrey Yip.
Shareholders also approved the proposed reduction of RM75.00 million of AIZO’s issued share capital pursuant to Section 117 of the Companies Act 2016. The exercise is intended to eliminate accumulated losses, enhance the Company’s ability to declare dividends in the future when appropriate and improve the Group’s overall financial standing with stakeholders.
In addition, shareholders approved the proposed renounceable rights issue of up to 3.20 billion rights shares on the basis of 1 rights share for every 1 existing AIZO share held, together with up to 1.60 billion free detachable warrants on the basis of 1 warrant for every 2 rights shares subscribed.
Based on the indicative issue price of RM0.033 per placement share, the proposed private placement may raise gross proceeds of up to approximately RM24.37 million. Meanwhile, based on the indicative issue price of RM0.031 per rights share, the proposed rights issue may raise gross proceeds of up to approximately RM99.21 million. Collectively, the exercises may provide AIZO with access to up to approximately RM123.58 million in gross proceeds.
The proceeds from the proposed private placement are intended to be allocated mainly for capital injection into AIZO’s Large Scale Solar 5 Project, with up to RM21.58 million allocated for the project, while up to RM2.27 million is earmarked for working capital for existing businesses as well as expenses relating to the proposed private placement. The proceeds from the proposed rights issue are intended to fund current construction projects, future construction projects, working capital, investment in new businesses, digitalisation and process transformation initiatives, as well as expenses relating to the proposals.
En. Ahmad Rahizal Bin Dato’ Ahmad Rasidi, theExecutive Director of AIZO commented, “We are encouraged by the strong support shown by our shareholders at the EGM. Their approval provides AIZO with a clear mandate to move forward with a comprehensive capital plan that is designed to strengthen our financial position, support our project pipeline and prepare the Group for its next phase of growth. These proposals are not merely balance sheet exercises. They are important enablers for AIZO to fund strategic priorities, including the LSS5 Project, current and future construction projects, and selected growth initiatives. With a stronger capital platform, we will be better positioned to execute our plans with greater financial flexibility.”
The Board views the approved proposals as an important step in AIZO’s ongoing transformation, particularly as the Group continues to build a more resilient business base across construction, renewable energy, bituminous products and other strategic growth areas.
Following shareholders’ approval, AIZO will proceed with the implementation of the approved proposals in accordance with the relevant regulatory requirements and conditions. The Company remains focused on disciplined execution, prudent capital management and long-term value creation for shareholders.
