PETALING JAYA: Well Chip Group Bhd
has proposed a renounceable rights issue of up to 120 million new shares to raise between RM60.8mil and RM120mil, with proceeds earmarked mainly for expanding its pawnshop network and boosting cash capital for pawn loan disbursements.
The pawnbroking group said in a Bursa filing it plans to issue the new shares on the basis of one rights share for every five existing shares held, with the exercise to be undertaken on a minimum subscription basis.
The company said the rights issue would support its ongoing expansion plans.
"The initial set-up costs, including renovation costs, as well as the purchase of furniture and equipment to build a safe room, installation of safe and security systems, is estimated to be approximately RM1mil for each new pawnshop. In addition, a minimum paid-up capital of RM4mil is required to obtain a pawnbroker’s license for each new pawnshop," it noted.
To ensure the minimum fund-raising target is met, its substantial shareholder, VYN Holdings Sdn Bhd, has provided an irrevocable undertaking to subscribe for its entitlement under the exercise, which is expected to be completed in the fourth quarter of 2026.
