MRCB’s rights issue oversubscribed 7.37%

KUALA LUMPUR (Oct 26): Malaysian Resources Corp Bhd’s (MRCB) rights issue has been oversubscribed by 7.37%.

In a filing with Bursa Malaysia yesterday, MRCB said it received total valid acceptances and excess applications for 2.35 billion rights shares with 470.83 million rights warrants.

This represented an oversubscription of 161.57 million rights shares with 32.31 million rights warrants or 7.37% of the offered shares, it added.

In May, MRCB announced a renounceable rights issue exercise of up to 2.85 billion new shares in MRCB, together with up to 570.76 million free detachable warrants, on a one-for-five basis. The cash call would raise up to RM2.86 billion, which would be used to pare down its borrowings and finance the refurbishment of the national sports complex in Bukit Jalil here.

On Sept 20, MRCB fixed the issue price for its rights shares at 79 sen apiece and the exercise price for the rights warrants at RM1.25 each.

The rights shares with rights warrants are expected to be listed on the Main Market of Bursa Malaysia on Nov 3.

MRCB shares closed 0.5 sen or 0.54% lower at 92.5 sen yesterday, bringing a market capitalisation of RM2.03 billion.

This article first appeared in The Edge Financial Daily, on Oct 26, 2017.

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