KUCHING: Dayang Enterprise Holdings Bhd’s rights issue has been oversubscribed by 89,380,199 shares or 92.64 percent.
When application for the rights issue closed on Dec 6, the acceptances by shareholders amounted to 94,648,022 shares or 98.1 percent while excess applications totalled 91,213,160 shares or 94.54 percent.
“The total acceptances and excess applications for the rights issue were 185,861,182 rights shares, which represents an oversubscription of 92.64 percent over the total number of 96,480,983 rights shares available for subscription under the rights issue of share,” Dayang said in a filing with Bursa Malaysia.
The rights shares are issued on the basis of one rights share for every 10 existing shares at an issue price of 92 sen each.
On how the excess rights shares would be allotted, Dayang said it would be done in a fair and equitable manner to the entitled shareholders based on the following order of priority:
Firstly, to minimise the incidence of odd lots;
Secondly, for allocation to the entitled shareholders who have applied for excess rights shares under the excess application, on a pro-rata basis and in board lot, calculated based on their respective shareholdings in the company as at the entitlement date;
Thirdly, for allocation to the entitled shareholders who have applied for excess rights share under the excess application, on a pro-rata basis and in board lot, calculated based on the quantum of their respective excess rights shares applied for, and
Finally, for allocation to renouncees and/or transferees (if applicable) who have applied for excess rights shares under the excess application, on a pro-rata basis and in board lot, calculated based on the quantum of their respective excess rights shares applied for.
The rights shares are expected to be listed on Bursa Malaysia Main Market on Dec 19. Currently, Dayang shares are trading above RM2.40 each.
In a recent circular to shareholders, Dayang has said that proceeds from the rights issue would mainly be used to partially repay bank borrowings and for working capital. The corporate exercise is expected to raise RM88.76 million.
Dayang group (excluding its subsidiary Perdana Petroleum Bhd group) has loans and bank borrowings of about RM360.9 million.
The company has also recently announced to undertake a private placement exercise that involves the issuance of 96,480,983 new ordinary shares, representing about 10 percent of the company’s issued share capital. The price of the private placement shares has yet to be fixed.
Dayang has intended to utilise the bulk of the proceeds from the private placement as buildup of sinking fund for its Sukuk Programme, with the balance for working capital and capital expenditure.
The company has recently completed the issuance of RM682.5 million in nominal value of Sukuk Murabahah in two tranches of RM455 million and RM227.5 million.
The establishment of the Sukuk Programme formed an integral part of Dayang’s group-wide restructuring exercise.
From the proceeds, RM317.5 million is used to partially retire the group’s borrowings while the remaining RM365 million advanced to Perdana Petroleum for the early redemption of the latter’s Sukuk Murabahah.
Dayang group provides offshore topside maintenance services, minor fabrication works, offshore hook-up and commissioning services for the oil and gas industry as well as chartering of marine vessels.
The core business of Perdana Petroleum is the charter of its fleet of 16 offshore supply vessels, like anchor handling tug and supply vessels and accommodation work boats.