KUALA LUMPUR (July 11): Ho Hup Construction Company Bhd is planning to raise up to RM82.47 million via a renounceable rights issue of redeemable preference shares (RPS) with free detachable warrants to be used for working capital and to repay borrowings.

The rights issue will involve up to 82.47 million new redeemable preference shares at an issue price of RM1 per rights RPS, on the basis of one rights RPS for every five Ho Hup shares held. The rights issue will come with free detachable warrants, on the basis of five warrants for every two RPS subscribed.

The rights RPS will have a tenure of five years, with a dividend rate of 5% per annum based on the issue price of the rights RPS, Ho Hup said in a stock exchange filing yesterday.

Ho Hup expects the corporate exercise to be completed by the fourth quarter of 2020.

Ho Hup shares closed unchanged at 52.5 sen today, bringing the group a market capitalisation of RM217 million, after 1.23 million shares were traded.

The stock has almost doubled from its recent low of 26.5 sen on March 19. Year to date, it is up about 3%.

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