Friday, January 7, 2011

Guan Chong to raise RM120m from corporate exercise

KUALA LUMPUR: GUAN CHONG BHD [] is expected to raise up to RM120 million from its corporate exercise based on the expected exercise price of RM2 for the 60 million free warrants.

The company said on Friday, Jan 7 that it had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44.

"Based on the exercise price of the warrants of RM2 per new share, the company stands to potentially raise up to RM120 million during the tenure of the warrants upon full exercise of the warrants. Such proceeds will be utilised for the day-to-day working capital requirements of the group," it said.

The 60 million warrants were issued on the basis of one free warrant for every four existing shares held on the same entitlement date for the proposed bonus issue.

The corporate exercise also involved the proposed bonus issue of 80 million new shares of 25 sen on a one-for-three basis.

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