As MBSB
KUALA LUMPUR: Malaysia Building Society Bhd
(MBSB), which is making a two-call rights issue to raise up to RM2bil to strengthen its capital to comply with Bank Negara’s requirement, has fixed the price at RM1 each, with the entitlement of one rights share for each MBSB share held.
In a filing with Bursa Malaysia, MBSB explained that the first call of 59 sen for each rights share would be payable in cash on application and the second call of 41 sen for each rights share would be capitalised from MBSB’s share premium account.
MBSB had in March obtained an irrevocable written undertaking from its majority shareholder, Employees Provident Fund (EPF), to subscribe in full for its entitlement under the rights issue based on its shareholdings of 1.848 billion MBSB shares, about 65% of MBSB’s paid-up capital.
MBSB shares shed 2 sen to close at RM1.18 on Thursday.
In addition, MBSB has also entered into a managing and underwriting agreement on Thursday with the joint managing underwriters, AmInvestment Bank and RHB Investment Bank, as well as the joint underwriters -- AmInvestment Bank, RHB Investment Bank, Affin Hwang Investment Bank Bhd, Maybank Investment Bank Bhd and MIDF Amanah Investment Bank Bhd -- to underwrite the remaining portion of 1.051 billion rights shares, representing 36.3% of the total issue size of the rights issue, based on the first call of 59 sen per rights share that is not covered by the EPF’s undertaking.
Affin Hwang Capital has raised concern on the dilutive effect of the rights issuance on MBSB's earnings per share. At present, there are 2.839 billion outstanding MBSB shares.
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