Ho Hup plans rights issue to raise cash

  • Corporate News
  • Friday, 10 Jul 2020

KUALA LUMPUR: Ho Hup Construction Company Bhd is planning to raise at least RM50mil by selling new rights shares with free warrants.

Proceeds from the fund raising exercise will be utilised as working capital and to reduce debts, the company said in a filing with Bursa Malaysia today.

Ho Hup on Friday has proposed to issue up to 82.47 million new redeemable preference shares (RPS) at RM1 each with 206.19 million free warrants.

The RPS will be offered on basis of one RPS for every five Ho Hup shares. The free warrants will be issued the basis of 5 warrants for every two RPS.

"Notwithstanding the above, the company intends to raise a minimum proceeds of RM50mil," it said, via the issuance of 50 million RPS at RM1 each.

The minimum subscription target was based on the irrevocable undertaking by its major shareholders and underwriter.

M&A Securities in the adviser for the proposed fund raising exercise.

The exercise price of the free warrants was set at 50 sen, or 13.89% discount to Ho Hup theoretical ex-rights issue price of 58.06 sen

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