KUALA LUMPUR: G Capital Bhd’s shares fell over 7% in early trade Wednesday on dilution concerns following its proposed rights issue.
The counter shed 7.33%, or 5.5 sen to 69.5 sen. Year-to-date, the counter has fallen about 31.2%.
G Capital has proposed a renounceable rights issue with up to RM102.62mil nominal value of 1.28 billion five-year, 5% of redeemable convertible unsecured loan stocks (RCULS) at 100% of its nominal value of 8.0 sen each.
The company said the rights issue would be based on four RCULS for every one existing ordinary share in GCAP held on an entitlement date to be determined later.
The rights issue will be raising at least RM41.78mil and RM102.62mil under the minimum and maximum subscription levels.
G Capital said the proceeds from the exercise would partly finance project costs and accelerate the completion of its renewable energy projects.
Out of the RM102.62mil to be raised under the maximum subscription level, RM28.2mil are currently earmarked to part-finance project costs of the solar PV Systems (9.4MW) and RM469.1mil is being allocated for mini-hydropower plants (43.2MW) projects.