Good day to finish.. The worlers doing a painting job inconjunction with the opening ceremony of Seagames KL2017 at National Stadium Kuala Lumpur Sports City , Bukit Jalil. .. 17 July 2017. -- M. Azhar Arif/The Star
KUALA LUMPUR: Malaysian Resources Corp Bhd’s (MRCB) renounceable rights issue, which comes with free detachable warrants, has been oversubscribed by 7.37% .
The property and construction group told Bursa Malaysia that it received total valid acceptances for 2.16 billion rights shares (98.3% of the rights shares available) and total valid excess applications for 198.94 million more rights shares (9.07%) as at 5pm last Friday, the closing date.
MRCB last month fixed the issue price for its rights shares at 79 sen, a fifth lower than the indicative price of RM1 announced on May 17, as its share price had declined 30% since the initial announcement.
Since the announcement of the issue price, the company’s share price has fallen by a further 11% to close at 92.5 sen on Wednesday.
Based on that first announcement, MRCB plans to use the lion’s share of the proceeds to help 85%-owned subsidiary Rukun Juang Sdn Bhd to finance the Kuala Lumpur Sports City privatisation project and to repay debts.
The rights issue was made on the basis of one rights share for every existing MRCB share held and one free rights warrant for every five rights shares subscribed to.
Hong Leong Investment Research said on the day after the issue price was fixed that the issue price of 79 sen was lower than expected.
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