KUALA LUMPUR: Careplus Group Bhd plans to raise between RM8.02 million and RM55.4 million through a rights issue to complete phase one of its new energy vehicle (NEV) manufacturing hub in Chembong, Negeri Sembilan.

Phase one will include assembly lines with the capacity to produce up to 30,000 passenger cars, 10,000 vans or pickups, and 1,000 buses or trucks. The facility will support original equipment manufacturers (OEMs) for both personal and commercial use, such as fleet operators, ride-sharing services and delivery companies.

The renounceable rights issue priced at 12 sen per rights share will be on the basis of three new shares for every five shares held. Major shareholders Lim Kwee Shyan and Ng Shu Si have committed to subscribing to about 17.5 million rights shares.

Although Careplus is mainly known for its glove business, it entered the electric vehicle (EV) sector in 2023. The NEV hub is being developed on 73.34 acres of industrial land.

So far, the group has spent RM28.89 million on phase one, funded by internal resources and RM20 million from a private placement completed in December 2024. The remaining cost is estimated at RM61.11 million, which includes payments to contractors and consultants.

The exercise will be its fourth fundraising in five years. It has raised RM125.6 million by placing out shares to selected shareholders.

The company chose a rights issue to give all shareholders an equal chance to increase their stake. It will also strengthen the company’s capital base, improve its net assets and gearing ratio, and make it easier to secure future funding.

The total cost of the NEV hub’s phases one and two is estimated at RM150 million. Phase two is expected to start in 2026 with a construction cost of around RM60 million.

Careplus has entered the EV business through four companies. It owns 30% of Intro Synergy, which imports and distributes the “NETA” EV brand in Malaysia, and fully owns NexV Synergy, NETA’s master dealer in Malaysia, which also plans to expand into other EV brands with partner GoAuto.

Careplus holds a 51% stake in NexV Manufacturing, which runs the NEV manufacturing and assembly hub, and a 30% stake in GVT, which focuses on distributing commercial vehicles like buses, trucks, vans and commercial EVs.

Careplus’ share price closed down almost 3% to 16.5 sen on Friday, giving it a market capitalisation of RM127 million.