KUALA LUMPUR: Khee San Bhd
(KSB) has announced further progress in the implementation of its regularisation plan with the launch of its renounceable rights issue with warrants.
In a statement today, the confectionery manufacturer and distributor said this marks a key milestone in the group’s ongoing efforts to strengthen its financial position and move towards exiting PN17 status.
The exercise, approved by Bursa Malaysia Securities Bhd and KSB shareholders, involves the issuance of up to 960.96 million new ordinary shares on the basis of seven rights shares for every one existing share held.
"This will be issued together with up to 549.12 million free detachable warrants on the basis of four warrants for every seven rights shares subscribed, at an issue price of RM0.10 per share. The entitlement date for shareholders is set for Nov 20, 2025.
"KSB expects to raise between RM65 million and RM96.1 million, depending on the level of subscription. The proceeds will be utilised primarily to settle amounts owed to scheme creditors and support the group’s working capital requirements as part of its overall turnaround plan,” it said.
The regularisation plan, approved by Bursa Malaysia on Aug 19, 2024, outlines a comprehensive strategy, including the rights issue with warrants, a scheme of arrangement with creditors, a share capital reduction of RM137.52 million, and the establishment of an employee share scheme.
The group noted that Bursa has granted KSB until Feb 18, 2026, to complete the plan.
"KSB is optimistic that with the completion of these initiatives, the group will be well-positioned to exit PN17 and continue building on its heritage of over 70 years as a trusted Malaysian confectionery brand,” it said. - Bernama
