Brief Caption:An MQ worker using a coordinate measure machine to check the measurement of a tooling part used in hard disk drive.
KUALA LUMPUR: Tool and die maker MQ Technology Bhd
’s rights issue with warrants, partly aimed at raising funds for its diversification into the theme park business, was undersubscribed by 34.22%.
In a filing with Bursa Malaysia, the company said it had received valid acceptances (30.33%) and valid excess applications (35.45%) totalling 65.78% as of the closing date (Nov 14 at 5pm).
The subscription level of 275.27 million rights shares will raise RM27.53mil, which is above the minimum subscription level for gross proceeds to be RM18.05mil.
Of the proceeds, RM15.9mil will be used to subscribe to a 51% stake in a joint-venture company that will develop a theme park on 9.16 acres of reclaimed land in Klebang, Malacca. The park is tentatively named Malacca Explorer Resort – Dive Park Zone.
MQ Tech made the renounceable rights issue on the basis of three rights shares (with two free warrants) for every existing 10-sen MQ share held, with the issue price of 10 sen per rights share.
The company said the rights shares with warrants were expected to be listed and quoted on the Ace Market on Nov 28.
MQ Tech is engaged in the manufacture of moulds, tools, dies, jigs and fixtures primarily for use in the manufacture of hard disk drives,
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