MNRB falls to January 2017 low on RM400m fund raising plan

KUALA LUMPUR: Shares of MNRB Holding Bhd fell to a low of RM2.11, the lowest since late January 2017, on news the reinsurer planned a fund-raising exercise to raise about RM400mil by selling new shares to its shareholders.

At 10.40am, it was down 22 sen to RM2.12. There were 1.55 million shares done.

The FbM KKLCI was up 7.93 points or 0.45% to 1,761. Turnover was 1.09 billion shares valued at RM694mil. There were 438 gainers, 249 losers and 363 counters unchanged.

MNRB announced on Wednesday the rights issue would be on the basis of four new rights shares for every five shares held. Shares closed at RM2.34 on Wednesday, giving it a market capitalisation of RM747.98mil.

MRB said it plans to use the proceeds to boost the capital position for its subsidiaries, namely, Takaful Ikhlas Bhd and Malaysian Reinsurance Bhd, and grow their businesses.

For illustration purposes, the group assumed the issue price at RM1.57 per rights share. MNRB said the issue price represents a discount of 20.3% to the theoretical ex-rights price of RM1.97, based on the five-day volume weighted average market price of RM2.29 as at June 22.

“Barring any unforeseen circumstances, the proposed rights issue is expected to be completed in the fourth quarter of 2018,” it said.

Corporate News , Markets