Dolphin International aborts rights issue plan

PETALING JAYA: Dolphin International Bhd, which owns seven Uncle Don’s restaurant outlets, has aborted its proposed rights issue exercise to raise RM13.38mil.

Instead, the loss-making company plans to explore other “more expeditious manner” to raise funds for its working capital.

In a filing with Bursa Malaysia, Dolphin announced that it has withdrawn the listing application to Bursa Malaysia for the proposed rights issue.

To note, this was a downsized rights issue proposal after the company decided on Oct 13, 2023 not to implement the previous proposed rights issue to raise RM17.24mil by issuing up to 202.8 million rights shares at 8.5 sen apiece.

At that time, Dolphin said its board of directors had intended to relook into the said rights issue exercise in its entirety after taking into consideration, among others, the group’s financial performances and financial needs.

The proposed rights issue exercise that was aborted yesterday was announced on Oct 26, 2023.

This time around, Dolphin proposed to undertake a renounceable rights issue exercise to raise up to RM13.38mil.

The funds will be used to mainly repay its bank borrowings and cater for working capital.

This exercise entailed the proposed issuance of up to 178.38 million rights shares together with up to 133.79 million free detachable Warrants-C at an issue price of 7.5 sen per rights shares on the basis of four rights shares together with three Warrants-C for every three shares held.

Dolphin was originally a palm oil mill engineering services provider. It has ventured into the food and beverage business, which is its largest revenue contributor now.