Muhibbah’s rights issue exercise raises concerns


Kenanga said that in their view, this was an unexpected rights issuance. (File pic shows a Muhibbah project)

PETALING JAYA: Muhibbah Engineering (M) Bhd’s proposed rights issue, which targets to raise RM120mil, has raised concerns.

Kenanga Research noted the exercise, which was to raise funds mainly to pare down the company’s debt, was a cause for concern due to the impact on the company’s gearing.

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