KUALA LUMPUR: Engineering and project management consultant, HSS Engineers Bhd’s renounceable rights issue exercise has been oversubscribed by 75.1%.
The rights issue entailed the issuance of 31.9 million new ordinary shares of RM1.30 each. Together with the total valid acceptances and excess applications, the rights issue received demand for 55.9 million rights worth RM72.6mil, representing an oversubscription of 75.1%.
Subscribers of the rights issue also received one bonus share and three warrants for every two rights subscribed.
Executive vice chairman Tan Sri Kuna Sittampalam said following the completion of its rights issue, the group had now entered the final stages of the completion of the acquisition of SMHB Engineering Sdn Bhd, and are on track for integration in the first quarter of 2018.
“The acquisition will allow us to capture new opportunities in the water sector, and place us in a good position to take advantage of upcoming infrastructure boom expected in the industry.
“The strong support of our shareholders with the corporate exercises shows the confidence they have in the direction of the group, and we strive to deliver sustainable growth in our performance in the coming years,” Kuna said in a statement.
At an issue price of RM1.30 per rights, the rights issue raised approximately RM41.5mil in proceeds, which will be utilised to part finance the RM270mil acquisition of SMHB Engineering.
The acquisition will also be financed by bank borrowings and a private placement of ordinary shares to identified investors; collectively raising up to RM137.3mil.
The rights shares, bonus shares and warrants are expected to be listed and quoted on the Main Market of Bursa Securities on March 21, 2018.