Kuala ketil: Southern Cable Group Bhd has unveiled a strategic plan to raise up to RM259 million through a private placement of up to 10 percent of its total issued shares. This initiative aims to finance a comprehensive multi-year expansion plan designed to significantly boost the company’s production capacity.
According to BERNAMA News Agency, the cable and wire manufacturer has outlined plans to increase its annual cable and wire output by 25 percent, reaching 65,000 kilometers by the end of 2027, up from 51,980 kilometers per year as of June 30, 2025. Additionally, Southern Cable intends to triple its aluminium rod production to over 60,000 metric tonnes per year, a substantial increase from the current 20,000 metric tonnes per year as of June 30, 2025.
The expansion, which will be implemented in phases, is expected to be completed by the end of 2027. Southern Cable’s managing director, Tung Eng Hai, emphasized the company’s ambition to cater to the growing demand for cables and wires while contributing to Malaysia’s development through projects in power utility, renewable energy, construction, infrastructure, and data centers. He stated that the company aims to increase its overseas revenue, with a goal of having it contribute 30 percent of total revenue within the next three years. The funds raised will enhance manufacturing capabilities and support Southern Cable’s vision of becoming a leading integrated cables and wires manufacturer in the region.
From the total proceeds, RM129 million will be allocated for capital expenditure and expansion, including the construction and renovation of factories and warehouses near its existing operations in Kuala Ketil, Kedah. The company also plans to acquire a warehouse, purchase new machinery and equipment, and install two new production lines for medium- to extra-high-voltage cables, along with a new aluminium furnace.
An additional RM5.1 million will be dedicated to settling the balance of a previously acquired industrial land, while the remaining funds will be utilized for working capital to purchase raw materials, repay borrowings, and cover expenses related to the fundraising exercise. The proposed private placement, with an indicative issue price of RM2.16 per placement share, is expected to generate total gross proceeds ranging from RM218 million to RM259 million.
RHB Investment Bank Bhd has been appointed as the principal adviser and sole placement agent for the fundraising effort. Established in 1993, Southern Cable supplies cables and wires to major utility and telecommunications companies, including Tenaga Nasional Bhd, Telekom Malaysia Bhd, Sabah Electricity Sdn Bhd, Petroliam Nasional Bhd (Petronas), and Sarawak Energy Bhd.