Xingquan’s rights issue undersubscribed

Xingquan International Sports Holdings Ltd chairman and chief executive officer Wu QingQuan told a press briefing on August 26, 2009.

KUALA LUMPUR: Xingquan International Sports Holdings Ltd’s rights issue with warrants has been undersubscribed by 12.97% as at the close of acceptance last Wednesday.

The shoe sole and shoe maker told Bursa Malaysia that the offer received 67.54% level of acceptances and the excess applications amounting to 19.49%, for a total of 87.03%.

This represented an undersubscription of 21.925 million shares or 12.97%.

However, the minimum subscription of 89.8 million rights shares and 29.93 million Warrants B has been achieved.

“In view that the rights shares have not been fully subscribed for, the board has decided to allot the rights shares to all applicants who have applied for the excess rights shares with Warrants B,” it said.

The proposed rights issue comprised up to 169.03 million new 1 US cent shares at an issue price of 30 sen per rights share on the basis of one rights share for every two existing Xingquan shares held, together with one warrant for every three rights shares subscribed.

The biggest shareholder, Tai Zhen Xiang Holdings Ltd (about 53% stake), had given its undertaking to subscribe in full to its rights share entitlement of 89.8 million shares (RM26.94mil worth at 30 sen per rights share)  

The principal adviser is RHB Investment Bank Bhd.

Xingquan, which aimed to raise up to RM50.71mil, planned to use all the proceeds, after subtracting the estimated expenses, to buy knit fabric machineries. It currently outsources the production of its apparels and accessories.

Xingquan shares added half a sen to 27 sen on Monday, with 919,400 shares changing hands.