WZ Satu to raise up to RM72m via rights issue with free warrants

KUALA LUMPUR (Nov 19): WZ Satu Bhd is planning to raise up to RM72.3 million from a renounceable rights issue of irredeemable convertible preference shares (ICPS) that comes with free detachable warrants.

The ICPS will be issued to shareholders at an entitlement date to be fixed on the basis of three ICPS for every four shares held and one free detachable warrant (Warrant B) for every four ICPS subscribed for, the company said in a stock exchange filing yesterday.

WZ Satu plans to amend the company's constitution to facilitate the issuance of the ICPS.

Meanwhile, the issue price of the ICPS as well as the warrants' exercise price will be determined later. As much as RM72.3 million is expected to be raised, based on an illustrative issue price of 15 sen per ICPS, if up to 482.3 million ICPS are issued.

Of the proceeds to be raised, up to RM71 million will be used to fund future construction and/or project financing activities, while the remainder will be used for working capital and to defray estimated expenses in relation to the proposals, WZ Satu said.

Barring any unforeseen circumstances and subject to relevant approvals being obtained, the proposals are expected to be completed in the second quarter of 2020.

WZ Satu’s shares closed half a sen or 1.92% higher at 26.5 sen yesterday, valuing the company at RM135.59 million.

Click here for more property stories.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
  1. Tengku Uzir hands over leadership of WZ Satu to his deputy Mohamad Norza
  2. WZ Satu bags RM121m construction job for Kedah Rubber City
  3. WZ Satu gets RM101.8m subcontract job under Gemas-JB double track project