SHAH ALAM: OCK Group Bhd is targeting to grow its business via its renounceable rights issue proposal that will roughly raise RM145mil.
The telecommunications network services provider has proposed to undertake a rights issue of up to 290.49 million new ordinary shares on the basis of one rights share of 50 sen indicatively for every two existing shares held. There will be free detachable warrants on the basis of one warrant for every one rights share subscribed.
The renounceable rights issue with warrants is expected to raise gross proceeds of up to RM145.24mil based on the indicative issue price of RM0.50 per rights share.
“The objective of this corporate exercise is to strengthen our financial position and prepare the group to seize future opportunities for business expansion and working capital. We are offering our existing shareholders the opportunity to take part in our future plans.
“The attaching warrants of this exercise will potentially allow the entitled shareholders to benefit from the possible capital appreciation of the warrants and increase their equity participation in the company,” said group managing director Sam Ooi.
Business expansion would include costs of investments into the acquisition of companies, the acquisition of existing brownfield telecommunications infrastructure, and building new greenfield telecommunications infrastructure, inclusive of towers, sites, and equipment to lease to telecom operators in the Asean region