KUCHING: Dayang Enterprise Holdings Bhd has fixed the issue price of its rights shares at 92 sen each. The issue price represents a discount of 91 sen or about 49.73 percent to the theoretical ex-rights price of Dayang shares of RM1.83, which was calculated based on the five-day volume weighted average price (VWAMP) of Dayang shares up to Nov 6, the company said in a filing with Bursa Malaysia.
Miri-based Dayang is undertaking renounceable rights issue of up to 96,480,983 new ordinary shares on the basis of one rights share for every 10 existing shares held by entitled shareholders. The rights issue will be carried out on a full subscription basis.
Dayang has earlier procured irrevocable and unconditioned undertakings from its key shareholders to subscribe in full their respective entitlements of the rights shares.
These shareholders are Naim Holdings Bhd (the single largest shareholder which has a 26.42 percent stake in Dayang), Datuk Ling Suk Kiong (7.59 percent), Joe Ling Siew Loung @ Lin Shou Long (4.3 percent), Datin Wong Siew Hong, Vogue Empire Sdn Bhd (6.35 percent), Datuk Hasmi Hasnan (0.1 percent) and Tengku Datuk Yusof Tengku Ahmad Shahruddin (6.83 percent).
On Nov 7, Dayang entered into an underwriting agreement with Kenanga Investment Bank Bhd, which will underwrite 46,702,945 rights shares representing about 48.41 percent of the total rights shares available for subscription.
The rights issue is expected to raise gross proceeds of RM88.76 million. The bulk of the proceeds will be utilised to repay bank borrowings and as working capital.
Dayang will also undertake a private placement exercise that involves the issuance of 96,480,983 new shares, representing about 10 percent of the company’s total issued share capital.
The price of the placement shares has not been determined.
However, based on an illustrative issue price of RM1.14 per placement share, Dayang is expected to raise RM109.99 million from the private placement.
According to the company earlier, RM75 million from the proceeds will be utilised as build-up of sinking fund for its proposed Sukuk Programme, RM17.498 million for working capital and RM15 million for capital expenditure.
Meanwhile, property firm ACME Holdings Bhd shareholders have approved the company’s proposed bonus issue of warrants, private placement and acquisition of two companies at its EGM on Nov 6.
The bonus issue of up to 59,689,500 free warrants is on the basis of one warrant for every four existing ordinary shares while under the private placement exercise, up to 89,534,200 new shares representing up to 30 percent of the enlarged number of issued company shares (excluding treasury shares) will be placed out to investors.
Based on an indicative issue price of 24 sen per placement share, the exercise is expected to raise gross proceeds of up to RM16.56 million and RM21.49 million under the minimum and maximum scenario.
The proceeds will be utilised to partially finance the company’s proposed acquisition of the entire share capital in Medan Tropika Sdn Bhd for RM34.255 million.
Medan Tropika owns two adjoining parcels of freehold development land in Mukim 13, Timor Laut district in Pulau Pinang.
Shareholders have also given their greenlight to ACME to acquire Focal Products Sdn Bhd for RM2 million. Focal Products has been granted the planning permission for a proposed residential development of two blocks of 39-storey affordable apartments with a total of 646 units.
ACME said the acquisition of Medan Tropika and Focal Products is to expand the group’s land bank and existing property development activities.