KUALA LUMPUR (March 21): IOI Properties Group Bhd’s rights issue has been oversubscribed by 136.73%.

In a filing with Bursa Malaysia yesterday, IOI Properties said it received valid applications for 1.51 billion rights shares over the total amount of 1.1 billion rights shares available for subscription.

“Together with the total valid excess applications received of 412.59 million rights shares, this represents an oversubscription of 37.45% over the total amount available for subscription,” it added.

In November last year, IOI Properties proposed to undertake a one-for-four rights issue at RM1.38 per rights share, totalling about RM1.5 billion, to repay borrowings. The rights issue price is at a 35.5% discount to the five-day volume weighted average price of RM2.14. The group’s previous rights issue took place in November 2014.

This follows IOI Properties’ successful tender for a parcel of leasehold land at Central Boulevard in Singapore’s Marina Bay for S$2.57 billion (RM8.14 billion), in which it intends to fund the land tender mainly via bank borrowings.

IOI Properties shares closed four sen or 2% higher at RM2.04 yesterday, giving it a market capitalisation of RM11.28 billion.

This article first appeared in The Edge Financial Daily, on March 21, 2017.

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