KUALA LUMPUR (Jan 9): Mah Sing Group Bhd has fixed the issue price for its proposed rights issue at RM1.42 per rights share, at an entitlement basis of 3 rights shares for every 10 existing shares held.
The entitlement basis for the warrants has also been fixed at 3 free warrants for every 10 rights shares subscribed, with the exercise price of the warrants fixed at RM2.63 each.
In a filing to Bursa Malaysia, Mah Sing said the issue price of RM1.42 per rights share represents a discount of 37.7% to the 5-day volume weighted average market price (5-day VWAMP) of its shares up to Jan 8, 2015 of RM2.28 and 31.7%, to the theoretical ex-rights price of RM2.08 (TERP) based on the 5-day VWAMP.
Meanwhile, the exercise price of RM2.63 for each warrant represents a premium of 26.4% to the TERP, it added.
“Based on the issued and paid-up share capital as at Jan 9, 2015, the rights issue with warrants will involve the issuance of up to 442.88 million rights shares to raise gross proceeds of up to RM628.89 million and the issuance of up to 132.86 million warrants, to raise gross proceeds of up to RM349.43 million, assuming full exercise of the warrants,” said Mah Sing.
Mah Sing shares closed 2 sen higher at RM2.30 today, with a market capitalisation of RM3.37 billion.