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Ho Hup Construction calls off RM136m rights issue

Ho Hup Construction calls off RM136m rights issue

Fri, 13 Oct 2017
11:57 am

KUALA LUMPUR (Oct 13): Ho Hup Construction Co Bhd has called off a RM136 million cash call after the extension of time to implement the corporate exercise lapsed, adding that it will explore alternative options to fund its construction and property development projects.

In a filing with Bursa Malaysia yesterday, Ho Hup said Bursa Securities’ approval for the extension of time to implement the corporate exercise had lapsed.

“In relation thereto, the board wishes to inform that the company has decided not to proceed with the corporate exercise as it intends to explore alternative options to meet its funding requirements,” it added.

On Jan 26, 2016, the company announced a fundraising exercise involving a proposed rights issue of shares and rights issue of redeemable preference shares (RPS). Part of the proceeds raised would be used to fund its construction and property development projects on hand.

The proposed rights issue of up to 85.14 million shares would be offered on a basis of one rights share for every five existing Ho Hup shares. Each rights share subscribed will be entitled to one free detachable new warrant (Warrants B).

The proposed RPS issue of up to 85.14 million RPS of one sen each would be offered at the same ratio, with every RPS subscribed also entitled to one free detachable warrant (Warrants C).

For illustrative purposes, the exercise was expected to raise RM110.98 million under a minimum scenario and RM136.22 million under a maximum scenario based on an indicative issue price of 80 sen for the rights share and RPS.

This article first appeared in The Edge Financial Daily, on Oct 13, 2017.

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