PETALING JAYA: Perak Transit Bhd’s environmental, social and governance (ESG) rating could see an improvement moving forward.

       The company planned to spend RM5.2mil to acquire electric buses and install electric-vehicle-charging stations which would help to reduce the company’s carbon footprint in the area of transportation.

       However, it would do this by means of a private placement which according to TA Research is expected to dilute the company’s financial year 2022 (FY22) to FY24 earnings per share (EPS) by 7.8% to 8.2%.

       Its net gearing for the FY22 is also set to improve to 0.37 times from 0.4 times, it said.

       Perak Transit

       “Despite the EPS dilution, we are positive on the fund-raising exercise and deem it necessary for future earnings sustainability and growth,” the research house said.

       The private placement of up to 63.7 million shares represents 10% of the total number of issued shares of the company.

       The issue price of the new placement shares will be fixed after the receipt of all relevant approvals, the company said in its circular.

       “Assuming an indicative issue price of 60 sen, Perak Transit is expected to receive gross proceeds of RM38.08mil,” it said.