MRCB falls 4% on rights shares' maiden trade

KUALA LUMPUR (Oct 5): Malaysian Resources Corp Bhd (MRCB) shares fell as much as four sen or 4% as the builder and property developer's new rights shares start trading today.

At 10:02am, MRCB shares fell to their lowest so far today at 87 sen for a market value of RM2 billion. MRCB was Bursa Malaysia's ninth most-active stock with some 12 million shares transacted.

CIMB Investment Bank Bhd analyst Sharizan Rosely said: "Our adjusted RNAV (revised net asset value)-based (MRCB) target price incorporates the dilution from the rights issue and outstanding warrants."

Sharizan wrote this in a note on Tuesday (Oct 3). He said CIMB had maintained its MRCB share target price at RM1 with an unchanged "hold" call.

Earlier, MRCB said its renounceable rights issue involved up to 2.85 billion new MRCB shares at 79 sen each together with up to 570.76 million free detachable warrants.

MRCB said it was implementing its rights issue on the basis of one rights share for every one existing MRCB share held by the entitled shareholders as at 5pm yesterday (Oct 4). The company said it was undertaking its warrant issue on the basis of one warrant for every five rights shares subscribed.

Today, MRCB rights shares under the stock short name MRCB-OR topped Bursa Malaysia's most-active list. At 10:02am, MRCB-OR rose 5.5 sen to 6.5 sen with some 111 million units traded.

According to MRCB, MRCB-OR will cease trading next Thursday (Oct 12). — theedgemarkets.com

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