KUALA LUMPUR: DIALOG GROUP BHD [] has proposed its first cash call from its shareholders to raise up to RM638 million under a rights issue with free warrants, on the basis of two rights shares and one warrant for every 10 shares held.
The company said on Thursday, Aug 18 the corporate exercise would involve a renounceable rights issue of up to 398.73 million new shares of 10 sen each with 199.36 million free detachable warrants.
'The cash call is the first equity fund raising from its shareholders since its initial public offer in 1996.
'Based on the indicative issue of RM1.60, the corporate exercise would raise up to RM638 million,' it said.
It said the rights shares and warrants would on the basis of two rights shares and one warrant for every 10 shares held, based on a minimum subscription of 280 million rights shares with 140 million warrants.
It also proposed to increase in the authorised share capital from RM250 million comprising 2.5 billion shares to RM500 million comprising five billion shares.
Dialog said this cash call would further strengthen its balance sheet with its shareholders equity increasing to RM1.2 billion from RM583.1 million as at June 30, 2011.
The proceeds from the rights issue with warrants would be mainly used to invest in its upstream oil and gas opportunities, including the development of and production of petroleum under the risk service contracts with Petronas and to capitalize on the vast business opportunities in the oil, gas and petrochemical industry.
The company said on Thursday, Aug 18 the corporate exercise would involve a renounceable rights issue of up to 398.73 million new shares of 10 sen each with 199.36 million free detachable warrants.
'The cash call is the first equity fund raising from its shareholders since its initial public offer in 1996.
'Based on the indicative issue of RM1.60, the corporate exercise would raise up to RM638 million,' it said.
It said the rights shares and warrants would on the basis of two rights shares and one warrant for every 10 shares held, based on a minimum subscription of 280 million rights shares with 140 million warrants.
It also proposed to increase in the authorised share capital from RM250 million comprising 2.5 billion shares to RM500 million comprising five billion shares.
Dialog said this cash call would further strengthen its balance sheet with its shareholders equity increasing to RM1.2 billion from RM583.1 million as at June 30, 2011.
The proceeds from the rights issue with warrants would be mainly used to invest in its upstream oil and gas opportunities, including the development of and production of petroleum under the risk service contracts with Petronas and to capitalize on the vast business opportunities in the oil, gas and petrochemical industry.
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