Bina Puri’s rights issue undersubscribed by 6.63%

• The corporate exercise was announced in June 2022 and the rights issue was on the basis of two rights shares for every three existing Bina Puri shares.

KUALA LUMPUR (April 18): Bina Puri Holdings Bhd’s rights issue with warrants to raise up to RM58 million has been undersubscribed by 6.63%.

At the close of acceptance on April 11, the valid acceptances and excess applications totalled 1.29 billion rights shares, which is 93.37% of the 1.38 billion rights shares made available for subscription, the group said in a filing with Bursa Malaysia yesterday.

Bina Puri received valid acceptances totalling 587.94 million shares or 42.46% of the total shares available, and excess applications for 704.83 million shares or 50.91% of the total shares available.

“In view that the total number of excess rights shares applied for was 704.83 million rights shares, the board has decided to allot the excess rights shares to all entitled shareholders and/or their renouncee(s)/transferee(s) who have applied for the excess rights shares," the group said.

The corporate exercise was announced in June 2022 and the rights issue was on the basis of two rights shares for every three existing Bina Puri shares.

The rights issue comes with free detachable warrants on the basis of one warrant B for every five rights shares subscribed for.

The group had fixed the issue price of the right shares at 3.5 sen each and the exercise price of warrants B at four sen each.

The rights shares and warrants are scheduled to be listed on the Main Market of Bursa Malaysia Securities Bhd on April 20.

Together with the rights issue with warrants, the group had also announced a private placement, which was completed in December last year after raising RM16.78 million based on 479.29 million placement shares at 3.5 sen each.

Bina Puri plans to use the proceeds raised from rights issue with warrants and private placement to fund its property development projects and construction projects.

It also intends to repay its bank borrowings and its outstanding trade payables.